Saab Cars North America gets court nod to repay creditors

Article by Anita Panait, on July 18, 2013

The United States Bankruptcy Court in Delaware has approved a plan by Saab Cars North America Inc. to liquidate its assets and repay its creditors. Judge Christopher Sontchi has signed off the plan of the company to repay all secured creditors and some portion of unsecured claims, while wiping out equity holders.

The approval effectively ends the bankruptcy of the US unit of Swedish carmaker Saab Automobile AB. Several of the unit’s dealers in the US forced it into bankruptcy in 2012 after Saab Automobile entered liquidation proceedings in Sweden.

General Motors Co. sold Saab Automobile to Dutch carmaker Spyker Cars NV in 2010. The Dutch company, however, also had its own liquidity problems and was not able to keep Saab profitable. According to court papers, Saab North America's liquidation plan entails giving full payout to secured creditors, including government-owned Ally Financial.

Unsecured creditors are set to recover only between 25 percent and 82 percent of their claims, which totals around $77 million so far. The amount, however, does not include contract rejection claims that could be asserted by Saab's dealers in the US.

Saab said in court papers that the ultimate payback percentage to unsecured creditors will depend in part on how large those claims would turn out as well as on the how successful was a planned trust in litigating against creditors and affiliates. Saab hopes the litigation would result in trimming the claims of creditors and affiliates on its estate. [source: Reuters]

Topics: saab, north america

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
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
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