SAS AB has just announced that the US Bankruptcy Court for the Southern District of New York has approved SAS’s $700 million debtor-in-possession (DIP) financing credit agreement with funds managed by Apollo Global Management.
The terms of the DIP financing credit agreement are substantially similar to terms previously announced by SAS on August 14, 2022. The Court has indicated that it will shortly issue an order approving the DIP financing.
On August 14, 2022, SAS announced that it had entered into a USD 700 million DIP financing credit agreement with Apollo, subject to court approval. The terms of the DIP Funding Credit Agreement approved by the Court today are substantially similar to terms previously announced by SAS.
DIP financing is a specialized type of bridge financing used by companies restructuring through a Chapter 11 process. DIP financing, along with cash generated from the Company’s ongoing operations, allows SAS to continue to meet its obligations throughout the Chapter 11 process.
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Anko van der Werff, Chairman and CEO of SAS, said, “With the Court’s approval of our DIP financing, we are making significant progress in our Chapter 11 process. The DIP financing agreement with Apollo followed a thorough and competitive process that we conducted to achieve the best funding result for SAS, and we are pleased that the Court has approved it.”
“I want to thank our employees for their hard work and dedication, and our business partners for their support as we continue to move forward in this process. We continue to make progress with the SAS FORWARD plan and our work to build a competitive and even better airline for our customers,” he added.