SAS planes are parked at Oslo Gardermoen airport, as Scandinavian Airlines (SAS) pilots go on strike, Norway July 4, 2022. Beate Oma Dahle/NTB via REUTERS

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Sep 9 (Reuters) – Bankrupt Scandinavian airline SAS AB (SAS.ST) said on Friday it had received U.S. court approval for $700 million in debtor-in-possession (DIP) financing from funds managed by private equity firm Apollo Global Management (APO.N).

The approved credit agreement is part of the airline’s bankruptcy protection process and its terms will be substantially similar to those announced on August 14, SAS said.

Long-struggling SAS, ravaged by the pandemic and under pressure from low-cost rivals, filed for bankruptcy protection in July as pilots began a two-week strike, hoping to emerge from here nine to 12 months as a more competitive airline.

Some analysts have said Apollo could become a major SAS shareholder by converting the loan to equity at the end of the Chapter 11 process.

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Reporting by Jyoti Narayan in Bengaluru; Editing by Devika Syamnath

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