Airline SAS defers interest payment amid restructuring

Scandinavian airline SAS (SAS.ST) said on Thursday it will defer interest payments due later this month on its perpetual capital securities as part of the carrier’s restructuring and the ongoing chapter 11 bankruptcy protection process.

“The deferral of interest payment is made in accordance with the terms and conditions for the respective capital securities,” SAS said in a statement.

The company had been due to pay 39.7 million Swedish crowns ($3.52 million) in interest on Oct. 24 and a further 153.1 million on Oct. 26.

Long-struggling SAS, ravaged by the pandemic and pressured by low-cost rivals, sought bankruptcy protection in the United States in July in a bid to restructure its balance sheet and cut costs.

($1 = 11.2724 Swedish crowns)