Apollo Global Management (APO), a prominent U.S. private equity firm, is actively pursuing inclusion in the consortium selected by Scandinavian airline SAS to guide it through the bankruptcy process, as per a source familiar with the situation.
SAS, which has long faced financial challenges exacerbated by the pandemic and competitive pressures from budget carriers, filed for bankruptcy protection last year.
Last week, SAS announced that Air France-KLM and Castlelake, a U.S. investment firm, would emerge as major shareholders alongside the Danish government.
Apollo, having previously extended a $700 million debtor-in-possession (DIP) loan to SAS for its restructuring, was considered a strong contender in the airline's equity fundraising initiative within its Chapter 11 bankruptcy strategy.
Apollo has the potential to convert the loan into equity upon the conclusion of the process.
According to the source, Apollo is actively participating in the bidding process and aims to infuse additional capital into SAS in addition to the investment proposed by the winning consortium.
The extent of Apollo's potential stake and the amount it plans to invest remain uncertain.
Collectively, the new shareholders, which include Danish investment firm Lind Invest, are anticipated to inject 12.9 billion Swedish crowns ($1.18 billion) into the restructured SAS.
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