Shares in Swedish airline SAS plummeted by over 80% following news of a rescue deal.
Having filed for bankruptcy protection in the US last year, SAS announced on Tuesday that American investor Castlelake and Air France-KLM (OTC:AFLYY) would become major shareholders as part of a restructuring of the business.
SAS fell into trouble after several years of rising costs and reduced demand during the pandemic.
Castlelake and Air France-KLM (OTC:AFLYY) will acquire 32% and 20% of Scandanavia’s largest airline as part of the deal, while the Danish government will take a stake worth 26%, alongside Lind Invest’s 8.6%.
“As a result of that process, all of SAS’s common shares and listed commercial hybrid bonds are expected to be cancelled, redeemed and delisted,” the airline said in a statement.
The remaining shares will be distributed to creditors and the airline will depart from the Stockholm and Copenhagen markets in the second quarter of next year.
Investors fled as a result, prompting shares down 84% to 0.048 Swedish crowns.