Spanair crushes SAS with a heavy bankruptcy blowMonday, 30 January 2012
Scandinavian airliner, SAS saw red on the stock exchange Monday as past weekend just added more strain into the ailing company. The notification of the bankruptcy of the Spanish carrier Spanair, which SAS is fully exposed to was the source of the pain.
The news of Spanair's bankruptcy therefore has resulted in the SAS writing down its assets by Skr1.7 billion
AdvertisementAccording to a press release from the company, this becomes a liquidity effect of some Skr200 and Skr300 million. The assets are written down as Spanair owns SAS money. Therefore to put it bluntly, SAS has lost that amount of moment.
That is, with the bankruptcy, it is uncertain whether the Spanish company will be able to repay the money, which will affect SAS's liquidity.
SAS has a financial readiness of Skr10.6 billion, and reiterated on Friday its expectation of a profit before nonrecurring items in terms of full year of 2011.
In early trading on Monday, after the announcement of the write-down, the company's shares backed down almost 6 percent.
By Scancomark.se Team
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