Air France-KLM to team up with SAS AB through equity and commercial cooperation - Seite 2

Air France-KLM’s investment described herein will not have any impact on the Group’s medium-term outlook.

In parallel to the transaction, and subject to the satisfaction of certain conditions including SAS AB’s exit from Star Alliance, Air France-KLM will seek to establish a commercial cooperation between its airlines and SAS AB. In doing so Air France-KLM will strengthen its footprint in Scandinavian markets, where the SAS brand and loyalty program are well-established. Such commercial cooperation would benefit Scandinavian customers through extended connectivity and broader access to the worldwide network of Air France-KLM.

Air France-KLM would like to thank SAS AB’s Board of Directors for its consideration throughout the competitive bidding process.

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Details of the contemplated transaction:

The net proceeds of this investment would be used, among other things, to repay post-petition debtor-in-possession (DIP) financing. General unsecured creditors would receive USD 325 million of value in the form of cash and common shares.

Definitive agreements between the members of the Consortium would include specific provisions whereby Air France-KLM’s stake may be increased such that Air France-KLM may become a controlling shareholder, after a minimum of two years, subject to among other things, certain regulatory conditions and financial performance.

As noted above, the investment by the Consortium (which may come to include additional investment partners) is subject to approval by the US court and consummation of a Chapter 11 plan of reorganization of SAS AB and certain of its subsidiaries. Such approval will come only after the Chapter 11 plan is submitted to creditors for a vote. SAS AB and those subsidiaries intend to undertake the process necessary to obtain such approval by the US court in short order. SAS AB may thereafter apply for a Swedish in-court reorganization aimed at implementing a Swedish reorganization plan for SAS AB that results in cancellation of all existing shares of stock of SAS AB pursuant to Swedish law. Following that, the investment may be consummated as part of implementing the Chapter 11 plan of reorganization.