March 23, 2020 / 6:53 AM / 14 days ago

BRIEF-Scandic Expects Costs Reduction Of Over 60% From April

March 23 (Reuters) - Scandic Hotels Group AB:

* SCANDIC ADAPTING OPERATIONS TO A TEMPORARY PERIOD OF SIGNIFICANTLY LOWER OCCUPANCY

* SUBSTANTIAL COST REDUCTIONS TO ADAPT OPERATIONS TO CURRENT MARKET SITUATION

* ESTIMATES THAT COMPANY’S COSTS, EXCLUDING RENTS, WILL BE REDUCED BY MORE THAN 60 PERCENT FROM APRIL

* IS ALSO WORKING INTENSIVELY TO IMPLEMENT FURTHER COST REDUCTIONS

* HAS ALSO TAKEN MEASURES TO PROTECT CASH FLOW DURING COMING MONTHS

* HAS AGREED WITH MOST OF ITS PROPERTY OWNERS ON A TEMPORARY RENT PAYMENT SOLUTION THAT IS ADAPTED TO CURRENT MARKET SITUATION

* HAS ALSO DECIDED NOT TO COLLECT FRANCHISE FEES FROM FRANCHISEES

* ESTIMATES THAT IT WILL HAVE ADDITIONAL FINANCING NEEDS TOTALING 1 TO 1.5 SEK BILLION DURING 2020

* SCANDIC EXPECTS TO HAVE A FINANCING SOLUTION IN PLACE DURING Q2 2020 FOR THIS SCENARIO Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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