SAS completes $700 million debtor-in-possession financing agreement


SAS will finance the funds necessary to continue its operations through DIP financing while it is subject to Chapter 11 bankruptcy.

  • SAS A350

    IATA/ICAO code:

    Airline type:
    Full service carrier

    Copenhagen Airport, Oslo Gardermoen Airport, Stockholm Arlanda Airport

    Year of foundation:

    star alliance

    Air group:
    SAS Group

    Anko van der Werff

Scandinavian Airlines (SAS) has announced its entry into a debtor-in-possession (DIP) financing for $700 million. The announcement comes after the airline voluntarily filed for Chapter 11 bankruptcy in the United States in July 2022. Apollo Global Management will manage the funds. The financing agreement will provide SAS with the necessary funds to meet its obligations in the event of bankruptcy.

Credit needed

SAS announced that it would secure $700 million in credit through debtor-in-possession (DIP) financing. The airline has elected to hand over the financial management of the DIP financing to Apollo Global Management. SAS needs additional funds to continue to meet its ongoing obligations. After filing for Chapter 11 bankruptcy in July 2022, the airline lacks the funds to continue operations.


DIP financing will need to be approved by the U.S. Bankruptcy Court for the Southern District of New York. The airline expects its financing plan to be approved by mid-September 2022. It also expects the bankruptcy process to take between nine and twelve months. Once the court approves the funding agreement, $350 million will be available for SAS to use as needed for its operations. DIP financing is financing to help businesses continue their operations while undergoing the Chapter 11 bankruptcy process.

Shared enthusiasm

SAS Chairman Carsten Dilling said the airline looks forward to partnering with Apollo and is optimistic about its plans to build a better future for the airline through its SAS plan. FORWARD. Dilling said,

“We are pleased to have secured this funding commitment from investment firm Apollo Global Management, which follows a thorough and competitive process,”

“With this funding, we will be in a strong financial position to continue to support our ongoing operations through our voluntary restructuring process in the United States. Apollo Global Management has a long track record of building stronger and more competitive strengths and extensive experience in the aviation sector.Thanks to their substantial financial commitment, we can now fully focus on accelerating the implementation of our SAS FORWARD plan and continuing our legacy of more than 75 years as a as the leading airline in Scandinavia.

Apollo partner Antoine Munfakh shared the Apollo team’s enthusiasm for the opportunity to work on this process with SAS. Munfakh said,

“SAS is one of Europe’s leading airlines and we are delighted to support Commercial Operations as they implement their restructuring plans to become a stronger business,”

“At Apollo, we have extensive experience in commercial aviation and fully support SAS FORWARD’s comprehensive plan as well as the company’s recapitalization objectives as it emerges from the Chapter 11 process.”


The SAS FORWARD plan is an initiative to ensure the airline’s long-term financial stability. It aims to reduce costs by carrying out a business transformation. The airline is using its bankruptcy status to help with this restructuring. The plan involves a cost reduction of $735 million per year. The airline expects this cost reduction will allow it to build a more sustainable cost structure. The plan also aims to raise $930 million in equity.

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