Scandinavian Airlines (SAS) is set to receive a $450 million loan next week following a ruling by a US bankruptcy court on Thursday (9 November).

The loan, from investment firm Castlelake, will be paid out between 15 and 17 November, according to a Reuters report, and will allow the long-struggling carrier to repay existing debtor-in-possession financing from Apollo Global Management. 

SAS filed for chapter 11 bankruptcy protection in the US in 2022 and last month announced that Air France-KLM will take a major stake in the airline alongside Castlelake, Lind Invest and the Danish government.

Under the new structure, which is subject to approval from regulatory authorities and creditors, Air France-KLM will hold approximately 19.9 per cent of the equity, with the option to take a controlling stake after two years. 

The carrier previously stated that the newly-established consortium would provide 13.2 billion Swedish crowns ($1.21 billion) in restructuring aid, including the Castlelake loan, according to Reuters.

The US bankruptcy court is set to hold a final hearing on the restructuring plan later this month.