Global Courant
The article continues below the advertisement
Three weeks have passed since a consortium consisting of Air France-KLM and three other investors won the bidding war for SAS. The parties are still only linked by a non-binding agreement and a final purchase agreement has yet to be signed.
On Tuesday evening Norwegian time, the judge in New York had called for a hearing where the bidding process would be further processed. The hearing was a so-called ‘status meeting’ that dealt with two matters:
To process a payment of just over NOK 33 million to cover costs for the winners of the bids – money that was withheld after the previous court hearing on October 12. Providing an update on the progress of the work to reach a final purchase agreement.New postponement Tuesday
Bankruptcy Judge Michael E. Wiles on Tuesday again decided to delay paying $3 million to the winning bidders – a payment that SAS lawyers previously argued was necessary to move the process forward.
It is a government agency supporting the secured creditors, the US Trustee, which strongly argues to the judge that it is wrong to pay out money to the winning bidders before a purchase agreement has been concluded.
The article continues below the advertisementSAS attorney Kelly DiBlasi of law firm Weil, Gotshal & Manges said during Tuesday’s hearing that they were still working with the consortium to finalize a purchase agreement – a so-called investment agreement. But DiBlasi still could not provide any clarification or estimate during the meeting as to when such an agreement will be reached. She says they are “actively” working with the consortium to finalize an agreement.
Judge Wiles suggested at the meeting that a new court order to pay costs will be drawn up and that costs will likely not be covered until a final purchase agreement has been reached. The judge gave no deadline for drawing up a purchase agreement, nor did it give a date for a new hearing.
Apollo on the owner’s side?
Since the last hearing on October 12, a possible new candidate has joined the ownership side of the ‘new’ SAS.
About a week ago it was announced that the lender in the US bankruptcy process, the American Apollo Global Management, is still involved in the process as an “active” bidder. This way they can join the consortium that submitted the highest bid, or in theory try a counter-bid.
No new information was given at Tuesday’s meeting about Apollo’s role in the effort to hammer out a final agreement.
Since the start of the bankruptcy process last fall, Apollo has been a lender through a so-called bridging loan financing of debtors in possessionor DIP loans. Initially, Apollo had provided $700 million in loans, but SAS only drew down half of the loan amount. Apollo was not among the bidders who won the bidding war for the company. Now, in theory, the fund can continue as co-owner by converting the loan into shares in the ‘new’ SAS. The further process will make this clear.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases via links that lead directly to our pages. Copying or other use of all or part of the contents may only be made with written permission or as permitted by law. For further conditions see here.
The bid winners in SAS still have to wait for a cover of DKK 33 million.
World News,Next Big Thing in Public Knowledg
#bid #winners #SAS #wait #cover #DKK #million
