Norway to allow SAS to convert debt to equity - minister

SAS earlier this year set out a plan to cut costs, convert debt and attract fresh cash from equity investors and said the restructuring was needed to prevent the carrier from running out of money. Vestre reiterated that Norway will not take part as an investor in any SAS share issue, a position similar to that of the Swedish government.

Norway will support a plan by airline SAS to convert debt into equity, but does not plan to remain a long-term owner in the company, Norwegian Industry Minister Jan Christian Vestre said on Tuesday.

SAS owes the Norwegian state around 1.5 billion Norwegian crowns ($153 million) from loans that were made during the pandemic, which under certain conditions could be converted to shares, he said. SAS earlier this year set out a plan to cut costs, convert debt and attract fresh cash from equity investors and said the restructuring was needed to prevent the carrier from running out of money.

Vestre reiterated that Norway will not take part as an investor in any SAS share issue, a position similar to that of the Swedish government. Denmark has, however, said that it plans to potentially raise its stake in SAS. ($1 = 9.7864 Norwegian crowns)