Group of U.S. dealers wants Saab placed into Chapter 11 bankruptcy protection

Article by Christian Andrei, on February 1, 2012

A group composed of 41 Saab U.S. dealers wants Saab Cars North America to be placed into Chapter 11 bankruptcy protection. The involuntary Chapter 11 petition is now pending in the U.S. Bankruptcy Court in Wilmington, Del. Leonard Bellavia, the lawyer who represents 162 of Saab's 188 U.S. dealers, said that this petition was filed in the event that a “white knight” purchases Saab's parent and would seek to reorganize the North American operations.

Last Friday, the dealers threatened to file a Chapter 7 for involuntary liquidation. The petition cites individual dealer claims for unpaid warranty, incentive reimbursement and other obligations that range from $79.11 to $167,977.98.

Parent firm Saab Automobile AB had filed for liquidation in a Swedish bankruptcy court on Dec. 19. Operations were suspended by Saab Cars North America that day.

McTevia & Associates was then chosen to run its U.S. operations, giving it day-to-day control of the assets. According to Kurt Schirm, the president of the Saab Dealer Council, its dealers examined the liquidation plan prepared for Saab Car North America by McTevia & Associates.

However, the dealers said that an involuntary Chapter 11 bankruptcy was in their best interests. Schirm said that the bankruptcy attorney who filed the petition doesn’t frequently see the open-ended third-party administration situations get resolved since they don't have the enforceability of a court, which could mandate the ruling. He also cited a situation wherein numerous lawsuits are filed “in different courts for different reasons in different jurisdictions” instead of having just one venue. [source: Autonews]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries