Spanair Files for Bankruptcy; SAS Loses Stake in Company

January 30, 2012 By: Jena Tesse Fox

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The Associated Press is reporting that Scandinavian airline group SAS AB, which has a nearly 11 percent stake in Spanair, says it will have to write down $250 million after the Spanish carrier filed for bankruptcy.

In the statement, the Stockholm-headquartered group says that thanks to preparation, the write-downs—linked to outstanding debt as well as guarantees and shutdown costs of Spanair—will have only a limited effect on SAS' business. The write-down will be booked as a one-time cost.

SAS says that before nonrecurring costs, it still expects to record a profit for the full year 2011.