SAS Stock Dives 95% as Restructuring Announced

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SAS Stock Dives 95% as Restructuring Announced
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Shares in SAS tumbled 95% at market open Wednesday after the Scandinavian airline announced new big shareholders late on Tuesday in a restructuring that will see the group delisted from bourses and existing ownership stakes erased.

SAS said U.S. investment firm Castlelake and Air France-KLM would become new major shareholders in the airline alongside the Danish state following bankruptcy proceedings.

Scandinavia's biggest carrier filed for bankruptcy protection in the United States in mid-2022 after years of struggling with high costs coupled with low customer demand brought on by the pandemic. Castlelake will take a stake of about 32%, Air France-KLM will own around 20%, Lind Invest 8.6% and the Danish state will hold about 26%, SAS said.SAS shares, which already tumbled in recent years traded down 79% at 0742 GMT to 0.06 Swedish crowns .

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