July 22, 2020 / 11:23 AM / 12 days ago

Airline SAS defers interest payment to save cash

FILE PHOTO: Scandinavian Airlines (SAS) Airbus A320 planes are parked at Copenhagen airport in Kastrup, Denmark, March 15, 2020. TT News Agency/Johan Nilsson via REUTERS

STOCKHOLM (Reuters) - Scandinavian airline SAS (SAS.ST) said on Wednesday it is postponing an interest payment which is due on Thursday on capital securities to conserve cash as the coronavirus pandemic continues to haunt the sector.

SAS in June agreed a 14.25 billion Swedish crown (1.27 billion pounds) plan with top shareholders, including Sweden and Denmark, to strengthen its finances amid the air travel collapse caused by the virus.

“Given the uncertainties, the company will continue to do everything it can to preserve cash,” the company said in a statement on Wednesday.

It added that the deferred payment was on its 1.5 billion crown subordinated perpetual floating rate capital securities.

SAS said that it would pay the interest in connection with a conversion of the capital securities into common shares “or in accordance with the terms and conditions”.

SAS earlier this month cancelled meetings on proposed bond and new hybrid notes conversions, as it did not expect the proposals to be approved by creditors.

Reporting by Helena Soderpalm; editing by Emelia Sithole-Matarise

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