Sas Shares Down On Restructuring

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Sas Shares Down On Restructuring

SAS Shares Down By 95% After Announcement Of Restructuring

During Wednesday's session, the SAS shares lost 95% of their value as the airline firm announced a restructuring. Under the program, any existing stakes of ownership will be removed, and the airline will also be delisted from the stock exchange.

As per the announcement made by SAS, Air France - KLM and Castlelake will become the new owners of the SAS airline.

SAS Faces Financial Trouble

SAS is regarded as one of the biggest airlines in Scandinavia & has recently filed for bankruptcy. The news of bankruptcy came during mid-2022 as the company was struggling to balance its high costs with revenue.

Once the new deal is complete, 32% of the company will be owned by Castlelake, and Air France will own 20% of the airline. Furthermore, a 26% stake will be in control of the Danish State. Any leftover equity in the SAS company will be distributed to the outstanding creditors.

In simple words, the airline was facing an influx of high costs but couldn't manage to bring up the revenue due to COVID restrictions. That's why the company finally filed for bankruptcy protection last year, as it was no longer viable to manage the finances.

Now, it appears that the company has found investors who are willing to buy ownership stakes. However, it appears the investors didn't like the news and thus caused the SAS stock to tumble further down. In the last few years, the share value was already down by a staggering 79%, which has now turned even lower.

Soon, the company will be delisted from any stock markets as well, which means the airline will cease to exist as a public company.

A look at the Twitter delisting tells us that anyone who is in possession of the SAS shares will simply get their money back in the brokerage account. So, on that front, potential investors of the SAS don't have to worry about any lost funds.

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