STOCKHOLM—The Swedish government will not inject new capital into SAS, its industry minister said on Tuesday, dealing a blow to the loss-making airline’s restructuring efforts and sending its shares down 14 percent to all-time lows.
SAS said last week a restructuring plan announced in Feburary depended on it raising 9.5 billion Swedish crowns ($968 million) in cash and converting 20 billion crowns of debt to equity, warning of liquidity problems if it fell short.
But no shareholders, including main owners Sweden and Denmark with 21.8 percent stakes each in the carrier, have committed to the plan.
“We want to be clear that we will not inject new capital into SAS in the future,” Sweden’s Karl-Petter Thorwaldsson told a news conference….