SAS Enters $700 Million Debtor-In-Possession Financing Agreement

SAS will finance the necessary funds to continue its operations through DIP financing while it undergoes chapter 11 bankruptcy.

  • SAS A350


    IATA/ICAO Code:

    Airline Type:
    Full Service Carrier

    Copenhagen Airport, Oslo Gardermoen Airport, Stockholm Arlanda Airport

    Year Founded:

    Star Alliance

    Airline Group:
    SAS Group

    Anko van der Werff

Scandinavian Airlines(SAS) has announced its entry into debtor-in-possession(DIP) financing for $700 million. The announcement comes after the airline voluntarily filed for chapter 11 bankruptcy in the US in July 2022. Apollo Global Management will manage the funds. The financing agreement will provide SAS with the necessary funds to meet the airline’s obligations while undergoing bankruptcy.

Necessary credit

SAS has announced that it will obtain $700 million in credit through debtor-in-possession(DIP) financing. The airline has chosen to relinquish financial management for the DIP financing to Apollo Global Management. SAS requires additional funding to continue meeting its ongoing obligations. Having filed for chapter 11 bankruptcy in July 2022, the airline lacks the funds necessary to continue operations.


The DIP financing will need to be approved by the US Bankruptcy Court for the Southern District of New York. The airline anticipates that its financing plan will be approved by mid-September 2022. It also predicts that the bankruptcy process will take between nine and twelve months. Once the court approves the financing agreement, $350 million will become available for SAS to use as needed for its operations. DIP financing is financing geared towards helping companies continue operations while undergoing the chapter 11 bankruptcy process.

Shared enthusiasm

The Chairman of the Board of SAS, Carsten Dilling, stated that the airline is looking forward to the partnership with Apollo and that it is optimistic about its plans to build a brighter future for the airline through its SAS FORWARD plan. Dilling stated,

“We are pleased to have secured this financing commitment from investment firm Apollo Global Management, which follows an extensive and competitive process,”“With this financing, we will have a strong financial position to continue supporting our on-going operations throughout our voluntary restructuring process in the U.S. Apollo Global Management has a long track record of helping build stronger, more competitive businesses and extensive experience in the aviation sector. With their substantial financing commitment, we can now focus entirely on accelerating the implementation our SAS FORWARD plan, and to continue our more than 75-year legacy of being the leading airline in Scandinavia.”

A partner of Apollo, Antoine Munfakh, relayed the team’s enthusiasm at Apollo for the opportunity to work through this process with SAS. Munfakh stated,

“SAS is one of Europe’s leading airlines and we are pleased to support the business operations as they implement their restructuring plans to emerge a stronger company,”“At Apollo we have a wealth of experience in commercial aviation and fully support the comprehensive SAS FORWARD plan as well as the goals of recapitalizing the Company upon its emergence from the chapter 11 process.”


The SAS FORWARD plan is an initiative to secure long-term financial stability for the airline. It aims to reduce costs by undergoing a business transformation. The airline is using its bankruptcy status to assist with this restructuring. The plan entails a cost reduction of $735 million per year. The airline anticipates that this cost reduction will enable it to build a more sustainable cost structure. The plan also seeks to raise $930 million in equity capital.

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