SAS on the verge of bankruptcy, according to some analysts
SAS collapses on the stock exchange after an analysis by the Norwegian bank DNB. According to the analysis, SAS must undergo a corporate reorganization to avoid bankruptcy.
SAS’s share fell 20% on Wednesday. The case comes after Norwegian bank DNB lowered the value of SAS Group shares from SEK 1.00 to SEK 0.40. A restructuring of the company is necessary to avoid bankruptcy, according to the analysis.
SAS has received over SEK 9 billion in support from the Swedish and Danish governments and has received additional funding from the Wallenberg Foundations. In total, the company received 14 billion SEK.
“Improvements are needed, but in my opinion, it is not urgent. But a business is always faced with the decision of when it is time to act. It is not good to act while standing beside the precipice. SAS can act nowsays Jacob Pedersenhead of equity research at Dansk Sydbank.
The background to the situation is that the reduction in traffic as a result of the pandemic, in addition, changes in the exchange rate have affected the business.
Until very recently, SAS was one of the best performing companies on the Stockholm Stock Exchange in 2022, when it rose after restrictions and entry bans were lifted. In recent days, however, there have been a number of setbacks. The company was hit by a strike among baggage handlers at Copenhagen Airport, which in turn caused a number of flight delays and cancellations.
Source: Dagens Nyheter