By Anna Ringstrom, Stine Jacobsen3 Min ReadSTOCKHOLM (Reuters) -The Swedish authorities is not going to inject new capital into SAS, its business minister stated on Tuesday, dealing a blow to the loss-making airline’s restructuring efforts and sending its shares down 14% to file lows.FILE PHOTO: Scandinavian Airlines (SAS) Airbus A320 planes are parked at Copenhagen airport in Kastrup, Denmark, March 15, 2020. TT News Agency/Johan Nilsson by way of REUTERS ATTENTION EDITORSSAS stated final week a restructuring plan introduced in February relied on it elevating 9.5 billion Swedish crowns ($968 million) in money and changing 20 billion crowns of debt to fairness, warning of liquidity issues if it fell quick.But no shareholders, together with essential homeowners Sweden and Denmark with 21.8% stakes every, have but dedicated to the provider’s plan.“We want to be clear that we will not inject new capital into SAS in the future,” Swedish business minister Karl-Petter Thorwaldsson instructed a information convention.Thorwaldsson stated he would, nevertheless, suggest to parliament that SAS be allowed to transform debt it owes to the federal government into fairness capital. In the long run the federal government nonetheless desires to exit SAS utterly, he added.Denmark’s finance minister, Nikolai Wammen, stated he had famous the Swedish determination however Danish lawmakers had been nonetheless assessing the airline’s plans and the way the state might “contribute”.A choice is anticipated by mid-June, Wammen stated in a written remark.A SAS assertion stated that Sweden’s determination to assist the debt conversion was an essential step for a change to succeed.Sweden has injected 8.2 billion crowns ($834 million) into the airline over current many years, together with loans to rescue the corporate from collapse through the COVID-19 pandemic.The provider was struggling even earlier than the pandemic hammered the journey sector. Squeezed by rising competitors from low-cost carriers equivalent to Ryanair and Norwegian Air, it has sought offers with labour unions on price cuts.“The Swedish decision puts serious pressure on creditors and employees to enter into agreements,” Sydbank analyst Jacob Pedersen stated in a observe to shoppers.“If the company can’t attract capital, because Sweden and possibly Denmark won’t invest more money, this risks being a step on the way to the grave.”Pedersen has a promote ranking on the inventory, which has misplaced 67% up to now this yr.CEO Anko van der Werff final week stated that SAS, to draw new buyers, should lower prices for leased planes that stand idle due to closed Russian airspace and gradual restoration in Asia.SAS shouldn’t be alone in its post-pandemic struggles. Air France-KLM final month launched a 2.3 billion euro ($2.4 billion) share sale to spice up its capital.($1 = 9.8127 Swedish crowns)Reporting by Anna Ringstrom in Stockholm and Stine Jacobsen in CopenhagenExtra reporting by Terje SolsvikEditing by Louise Heavens, Jason Neely, Emelia Sithole-Matarise and David GoodmanOur Standards: The Thomson Reuters Trust Principles.