Apollo Global Management Inc. challenged SAS AB’s plan to quickly pay the advisers to new investors in the bankrupt Scandinavian airline including Air France-KLM.
(Bloomberg) — Apollo Global Management Inc. challenged SAS AB’s plan to quickly pay the advisers to new investors in the bankrupt Scandinavian airline including Air France-KLM.
Apollo provided a $700 million debtor-in-possession term loan to SAS as it went through a Chapter 11 reorganization. While the US private equity firm reportedly sought to buy a majority stake in the airline, SAS last week chose a rival group also including Castlelake LP and the Danish state.
In a court filing, Apollo objected to SAS’s attempt to bring forward a court hearing to approve a $3 million payment to reimburse the advisers of Castlelake, Air France-KLM and another partner, Lind Invest ApS, for fees and expenses tied to negotiating the successful bid.
Apollo said it plans to object to the expense reimbursement, and speeding the hearing will make it harder to prevail or to negotiate terms.
In the filing, Apollo objected to shortening a normal notice period, saying SAS’ deadline was “merely a self-created emergency” and that “mere convenience” is not grounds enough to justify expediting the proceeding. Apollo also said it won’t have enough time to review and respond to the reimbursement motion.
SAS last week chose the Air France-KLM group to anchor $1.18 billion investment aimed at lifting the airline out of bankruptcy.
The airline is “currently finalizing the details and the final documentation for this agreed transaction structure with the investors,” Alexandra Lindgren Kaoukji, a spokesperson for the airline, said by phone, declining further comment.
Apollo declined to comment on the filing, which was reported by E24 earlier.
–With assistance from Charles Daly.
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