stockholmsas ab said monday that it wont use the second tranche of its bankruptcy loan during the second quarter of fiscal year 2023 following a strongerthanexpected development of its liquidity position during the winter sas filed for chapter 11 bankruptcy protection last year seeking to push through a comprehensive financial restructuring to cut costs and raise capital under the supervision of the us court system and it entered a 700 million debtorinpossession term loan agreement with funds managed by apollo global management dip financing is a specialized type of bridge financing used by businesses that are restructuring through a chapter 11 process its dip term loan agreement is divided in two tranches of equal size of which sas utilized the first tranche in september 2022 the scandinavian airline said that depending on the development of its liquidity position it might continue talks regarding access to the second tranche of the dip term loan at a later stage during the chapter 11 process in the meantime the company will continue to pursue other normal course financing initiatives that if closed will supplement the companys liquidity at a lower allin cost than a nearterm utilization of the second tranche of the dip term loan it said sas currently expects to emerge from its chapter 11 process during the latter part of the second half of 2023