The financial situation of the Scandinavian Star Alliance member SAS is very tight. The Swedish state does not want to provide any further financial aid. However, the Ministry of Economic Affairs announced that the debt that one has to the state can be converted into equity.
They do not want to provide additional funds. The government also made it clear that it does not want to remain permanently involved in SAS and will sell the shares. For the ailing carrier, the approval of the Swedish state is still a success, because the conversion of the debt into shares reduces the mountain of debt.
SAS said last week it needed a fresh capital injection of 9,5 billion Swedish kronor for its restructuring plan to work. However, none of the shareholders, including Sweden and Denmark -- the main owners with stakes of 21,8 percent each -- have jumped on the plan.
It was recently revealed that investors are interested in acquiring SAS . However, few details are known about this project. The interested parties are also said to be making any potential transaction contingent on cost savings. Therefore, it is expected that the unions could resist. Should a recapitalization of the carrier fail, a possible insolvency is no longer being ruled out.