Airline SAS rescue plan on track after shareholders greenlight

FILE PHOTO: Scandinavian Airlines (SAS) planes are pictured at the Arlanda airport, north of Stockholm in Sweden April 9, 2020. Anders Wiklund/TT News Agency/via REUTERS /File Photo

STOCKHOLM (Reuters) - Airline SAS SAS.ST said on Tuesday that it will proceed with its recapitalization plan, key to securing its future, after an extraordinary general meeting voted in favour of the board's proposals.

The Swedish-Danish carrier said earlier this month that the plan, aimed at seeing it through the collapse in air travel caused by the pandemic, was progressing after bondholders agreed to back a debt-to-equity conversion.

“As a result of the resolutions by the Extraordinary General Meeting, all material conditions for the recapitalization plan as described in the Company’s press releases dated 14 August 2020 have been fulfilled,” it said in Tuesday’s statement.

SAS agreed the plan with its top shareholders in June, but was forced last month to revise terms of the proposed debt to equity swap.

Reporting by Helena Soderpalm; editing by Niklas Pollard