Undisciplined

 where two Yale professors collected overdue interest on 

A group of investors in an SAS AB bond is arguing that the airline’s bankruptcy hasn’t wiped out the 40-year old note, potentially landing the Scandinavian operator with an unforeseen liability. The group claims that the 127.2 million Swiss franc ($152.9 million) bond remains valid because the company’s 2022 bankruptcy under Chapter 11 has not been recognized in Switzerland, in a letter addressed to SAS and seen by Bloomberg News.

The bondholders, who said they hold over half of the bond, are “taking steps to enforce” the claims under the notes, according to the letter. The company has not paid annual interest payments due on the subordinated perpetual note since January 2023, which counts as an event of default, according to the letter dated Nov. 5.

I LOVE that the company isn't even formally/openly acknowledging the existence of such a bond.

The issuer of the Swiss bond, an SAS subsidiary called Scandinavian Airlines System Denmark–Norway–Sweden, or SAS Consortium, was not included in the Swedish restructuring process meaning that the restructuring of the Swiss bonds is not valid there either, the letter says.

Under SAS’ restructuring, the Swiss bonds were not intended to receive any recovery, with their claims considered extinguished, the company said at the time.

"The SAS note in question is still listed on the SIX exchange, but is illiquid and quoted at a fraction of a centime on the franc."

Stacker_Stocks

econ

**Incredible story.**
(Reminds me of that anecdote in [*Money Changes Everything*](https://link.amazon/B0fwwozq7) where two Yale professors collected overdue interest on [a perpetual water bond issued in the 1700s](https://thedailyeconomy.org/article/the-return-of-the-century-bond/)...)

![](https://m.stacker.news/165753)

> A group of investors in an SAS AB bond is arguing that the airline’s bankruptcy hasn’t wiped out the 40-year old note, potentially landing the Scandinavian operator with an unforeseen liability. The group claims that the 127.2 million Swiss franc ($152.9 million) bond remains valid because the company’s 2022 bankruptcy under Chapter 11 has not been recognized in Switzerland, in a letter addressed to SAS and seen by Bloomberg News.

Formal "bankruptcy" didn't clear *all* bonds/debts, apparently.

> The bondholders, who said they hold over half of the bond, are “taking steps to enforce” the claims under the notes, according to the letter. The company has not paid annual interest payments due on the subordinated perpetual note since January 2023, which counts as an event of default, according to the letter dated Nov. 5.

I LOVE that the company isn't even formally/openly acknowledging the existence of such a bond.

![](https://m.stacker.news/165754)

> The issuer of the Swiss bond, an SAS subsidiary called Scandinavian Airlines System Denmark–Norway–Sweden, or SAS Consortium, was not included in the Swedish restructuring process meaning that the restructuring of the Swiss bonds is not valid there either, the letter says.
> Under SAS’ restructuring, the Swiss bonds were not intended to receive any recovery, with their claims considered extinguished, the company said at the time.

## "The SAS note in question is still listed on the SIX exchange, but is illiquid and quoted at a fraction of a centime on the franc."

***

archive: [https://archive.md/8WC7F](https://archive.md/8WC7F)