COPENHAGEN, Denmark — Shares in Scandinavian Airlines dropped more than 90% on Wednesday after the ailing carrier announced new shareholders in a restructuring scheme that will see the company delisted and existing ownership stakes erased.
The rescue deal involving airline alliance Air France-KLM and private equity firms Castlelake and Lind Invest, which became investors alongside the Danish state, was presented late Tuesday.
The deal means that SAS will receive $475 million in new equity and $700 million in convertible debt. Scandinavian Airlines will be taken off the stock exchange in the second quarter of 2024 and no payment will be made to current shareholders.
Shortly after trading opened on Wednesday at Nasdaq Nordic, which owns most stock exchanges in the Nordic-Baltic region, SAS shares dropped 96%.