By Dominic Chopping

 

STOCKHOLM--Scandinavian airline SAS AB said Sunday that it has entered into a $700 million bridge financing agreement with Apollo Global Management Inc. as it continues working through the chapter 11 bankruptcy-protection process.

The so-called debtor-in-possession, or DIP, financing credit agreement is a specialized type of bridge financing used by businesses that are restructuring through a chapter 11 process. The DIP financing, along with cash generated from the airline's ongoing operations, enables SAS to continue meeting its obligations throughout the chapter 11 process, it said.

SAS earlier this year launched a comprehensive restructuring plan and last month filed for chapter 11 bankruptcy protection in the U.S., as it seeks to push through the plan to cut costs and raise capital.

SAS said it anticipates receiving court approval for its DIP financing by mid-September.

The DIP facility matures nine months after the closing date, but may be extended for an additional three-month period up to three times, subject to the company paying an escalating extension fee.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

August 15, 2022 01:59 ET (05:59 GMT)

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