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

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
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