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The Norwegian state could become a part-owner of SAS – again

SASPhoto: Gorm Kallestad / NTB

Four years after the Norwegian state sold its share in SAS, the government could reenter the ownership structure of the airline.

The state’s crisis loan to SAS during the pandemic can be converted into shares, the newspaper Dagens Næringsliv writes.

“It is a well-known fact that SAS is in a demanding situation. The Norwegian state is already indirectly a creditor of SAS through the company using the loan guarantee scheme for aviation,” the communications department in the Ministry of Trade and Fisheries told DN on behalf of State Secretary Halvard Ingebrigtsen (AP).

The Ministry told E24 that they hired the investment bank ABG Sundal Collier to provide financial advice and the law firm Wiersholm as a legal advisor in connection with SAS ‘financial problems.

Business results

On Tuesday, SAS presented results from the second quarter of 2022. In the second quarter, the airline SAS reported a pre-tax loss of more than SEK 1.5 billion.

The company is now negotiating with creditors and unions to avoid bankruptcy. The company is trying to convert 20 billion in debt into shares, including the money that the Norwegian state has contributed in loans. In December 2020, SAS was allocated 1.5 billion in crisis loans through the state-owned Norwegian guarantee scheme as a result of the corona pandemic.

Up to 2018, the state’s shareholding in the airline was just under 10%. The SAS share has fallen by 31% this year and now costs 88 øre.

Source : © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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