July 10, 2020 / 7:04 AM / a month ago

Airline SAS sees bondholders spurning conversion in rescue plan

FILE PHOTO: A Scandanavian Airlines, known as SAS, Airbus A320-200 airplane takes off from the airport in Palma de Mallorca, Spain, July 29, 2018. REUTERS/Paul Hanna/File Photo

STOCKHOLM (Reuters) - Airline SAS (SAS.ST) said on Friday it had cancelled noteholders’ meetings on proposed bond conversions and new hybrid notes, part of a recently announced recapitalisation plan, as it did not expect the proposals to be approved.

The meetings had been scheduled for July 17.

“SAS has concluded that the majority required for the respective conversions cannot be expected to be obtained,” it said in a statement.

SAS said it would seek to enter into discussions with representatives of the holders of the bonds and the existing hybrid notes in order to find a solution.

Sweden’s and Denmark’s planned capital injections into SAS are conditioned by the burden sharing measures.

Reporting by Anna Ringstrom; editing by Niklas Pollard

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