By Gwladys Fouche
OSLO – Norway will assist a plan by airline SAS to transform debt into fairness below sure situations however doesn't plan to stay a long-term stakeholder, Business Minister Jan Christian Vestre mentioned on Tuesday.
SAS owes the state about 1.5 billion Norwegian crowns ($153 million) from loans made throughout the COVID-19 pandemic, he mentioned, including that these could be transformed into fairness below sure situations.
Vestre didn't elaborate on the situations that have to be met, saying this was market-sensitive info.
The airline mentioned it “appreciated” the assist from the Norwegian authorities, describing it as an “vital step” in direction of the plan’s success.
SAS this yr set out a plan to chop prices, convert debt and entice contemporary money from fairness traders and mentioned that restructuring was wanted to forestall the service from working out of cash.
Vestre reiterated that Norway, which bought out of SAS as a shareholder in 2018, is not going to participate as an investor in any SAS share concern, a place much like that of the Swedish authorities.
Denmark, nonetheless, has mentioned that it might increase its stake in SAS.
Labour Social gathering politician Vestre additionally urged SAS administration to resolve its battle with unions over pay and situations.
“They might have higher pre-requesites to succeed with a difficult restructuring if there may be ‘peace at house’, so I hope they do (resolve the battle),” he instructed Reuters.
He declined to say whether or not a take care of the unions is among the many situations for Norway to simply accept the SAS debt conversion.
($1 = 9.7864 Norwegian crowns)
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