SAS AB (“SAS”) has announced a recapitalization plan to tackle the effects of the COVID-19 pandemic. The recapitalization plan entails (i) directed issues of new ordinary shares and hybrid notes to the Swedish and Danish states, (ii) a rights issue of new ordinary shares to existing shareholders, (iii) conversion of existing subordinated hybrid notes (“Hybrids”) into new ordinary shares and (iv) conversion of existing senior unsecured bonds (“Bonds”) into new hybrid notes and, at the option of the bondholder, ordinary shares.

The implementation of the recapitalization plan is expected to entail the conversion of SEK 2.25 billion of debt into equity and the raising of SEK 12 billion of new equity, entailing a restoring of equity by SEK 14.25 billion.

Gernandt & Danielsson advises Intertrust (Sweden) AB (“Intertrust”), in its capacity as agent under the Hybrids and the Bonds, as well as the noteholders’ committee (the “NHC”), which consists of certain major holders of Hybrids and Bonds and which is led by Spiltan Fonder.

Gernandt & Danielsson advises Intertrust and the NHC with a team consisting of partners Mikael Borg and Sofie Viktorsson as well as associates Jakob Forsell and Jonathan Antonsson.