Scandinavian Airline's Shareholders Left in Shock as SAS Slides 95% - Catastrophic Losses Wipe Out Investments!

[ad_1] SAS Shares Plummet by 95% as Airline Announces Financial Restructuring COPENHAGEN, Oct 4 (Reuters) - SAS shares experienced a significant drop of up to 95% on Wednesday after the airline revealed its plans for a financial restructuring to avoid bankruptcy. The restructuring involves bringing on board new major investors and wiping out the stakes of over 250,000 owners. Scandinavia's largest carrier had filed for bankruptcy protection in the United States in mid-2022 due to years of struggling with high costs and low customer demand, worsened by the COVID-19 pandemic. SAS announced that U.S. investment firm Castlelake and Air France-KLM would become new major shareholders, alongside the Danish state. As a result, the airline's stock will be delisted from the Stockholm, Copenhagen, and Oslo exchanges. Air France-KLM, which has not made a deal since consolidating nearly 20 years ago, stated that it aims to integrate SAS flights into its own airlines' operations in Amsterdam and Paris to strengthen its Nordic presence. Castlelake will acquire a stake of approximately 32%, Air France-KLM will own around 20%, Danish investor Lind Invest will hold 8.6%, and the Danish state will have about 26%. The remaining equity is expected to be distributed among creditors. Shares in SAS, which have been declining in recent years, traded down 83% at 1144 GMT to 0.05 Swedish crowns ($0.0045). Sydbank analyst Jacob Pedersen suggested that the fact that the shares still have some residual value could be attributed to potential legal challenges or investor overconfidence. He added, "If you can't find someone even more opportunistic and risk-averse than yourself to sell it to, you will ultimately end up with a loss." ($1 = 11.0295 Swedish crowns) Reporting by Louise Breusch Rasmussen in Copenhagen and Anna Ringstrom in Stockholm; Editing by Terje Solsvik and Alexander Smith Our Standards: The Thomson Reuters Trust Principles. [ad_2] https://market-news24.com/stocks/scandinavian-airlines-shareholders-left-in-shock-as-sas-slides-95-catastrophic-losses-wipe-out-investments/?feed_id=71248&_unique_id=651d89110ebd8

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