(Reuters) - A U.S. bankruptcy court ruled on Thursday that Scandinavian airline SAS can receive a loan next week of $450 million from investment firm Castlelake, boosting the carrier's effort to complete its restructuring.
The loan to SAS will paid out between Nov. 15-17, the court was told by lawyers representing the airline, giving the company vital funds to repay existing debtor-in-possession financing from Apollo Global Management (NYSE:APO).
Long-struggling SAS, which in 2022 sought bankruptcy protection, last month announced that Air France-KLM and U.S. investment firm Castlelake would become new major shareholders alongside the Danish state and Lind Invest.
SAS last week said it had secured an agreement with the consortium for restructuring aid of 13.2 billion Swedish crowns ($1.21 billion), with the Castlelake loan set to refinance the Apollo debt.
The New York bankruptcy court is expected to hold a final hearing on the restructuring plan on Nov. 21.