We know everything about bankruptcy
16/05/2024
Thursday
16 May 
1970 The Russian poet Joseph Brodsky was ordered to leave the USSR.
1970 The Russian poet Joseph Brodsky was ordered to leave the USSR.
1970 The decision was made to begin the “cultural revolution” in China.
1970 The decision was made to begin the “cultural revolution” in China.
1970 The first film awards, which were later called the Oscars, were issued in Hollywood.
1970 The first film awards, which were later called the Oscars, were issued in Hollywood.
SAS AIRLINE STARTED BANKRUPTCY AMID PILOTS' STRIKE
The company hopes that the introduction of bankruptcy proceedings will allow the management to coordinate a restructuring program designed to modernize the fleet and attract new financial assets.
To do this, the airline needs to negotiate with key shareholders and creditors. If this happens, the company will be able to successfully exit the bankruptcy process within a year. This may be prevented by a strike organized by SAS pilots.
The company itself claims that the action will not have a significant impact on the business activities of the company. However, the appearance of information about the strike and the company's appeal to the court with a bankruptcy petition has already led to a 20% drop in SAS stock prices.
The reason for the strike was the demands to increase the salaries of pilots.
The company believes that as a result of the actions, about half of the regular flights will be canceled. The involuntary victims of the strikers will be 30 thousand passengers who use SAS services every day.
The company's plans to use legal tools to solve problems have been there before. In particular, in 2022, the firm has already announced the possibility of reducing its costs by 7.5 billion kronor (about $ 725 million). It was assumed that SAS would convert its obligations in the amount of 20 billion crowns into shares, and also conduct an additional issue in the amount of 9.5 billion crowns.
The strike, which involves about 1,000 employees of the company in Sweden, Norway and Denmark, has not yet brought positive results for the strikers. The last round of negotiations that the pilots are conducting with the company's management turned out to be fruitless.
