Apollo provides $700 million debtor-in-possession loan to SAS

Private equity firm Apollo Global Management has provided $700 million in financing to SAS AB as the Scandinavian airline tries to regain its financial health.

Stockholm-based SAS expects to get court approval for the financing by the middle of September, it said in a statement. The debtor-in-possession loan will enable it to continue meeting its obligations throughout its Chapter 11 bankruptcy process.

A crippling debt burden, dwindling cash balance and a significant slide in its share price have left the future of the tri-national airline in the balance. It filed for bankruptcy protection in the US on July 5, and said last week it expected the process to conclude within nine to 12 months.