Scandinavia seeks EU approval for SAS support: report

(STOCKHOLM) - The three Scandinavian countries, Denmark, Norway and Sweden, have sought EU approval for guaranteeing new loans for SAS airline, the financial daily Dagens Industri reported on Friday.

"The governments ... have requested EU approval for giving state guarantees for the extension of SAS loans worth billions of kronor," the paper said, citing sources close to the matter.

The three governments hold a 50-percent stake in the company.

Following pressure from Stockholm, five out of six banks had agreed to roll over loans worth 4.7 billion kronor (549 million euros or $699 million), on the condition that the debt was backed by state guarantees, Dagens Industri said.

The Scandinavian carrier on Thursday delayed the release of its quarterly results and the unveiling of a restructuring plan, saying negotiations over its credit facilities were ongoing but that they were expected to be finalised within a few days.