Swedish court rejected Saab application for protection from creditors

Article by Christian Andrei, on September 8, 2011

After concluding that a reconstruction (a new creditor protection process) will not work, the Vanersborg district court in western Sweden rejected Saab’s application to be protected from creditors so that it could have some breathing space to acquire funds from Chinese investors and work out its cash problems. Saab released a statement to express its disappointment with the ruling. Saab will file an appeal over this decision.

In 2009-2010, Saab had gone through this process during the period when General Motors was still its owner. The current owner of Saab, Swedish Automobile NV, sought the protection of the court so that creditors' payment demands won’t force the automaker into bankruptcy and will give it time to implement its plan to secure its future.

Saab filed for bankruptcy protection last Wednesday via a voluntary reorganization process that would have meant that the court will appoint an administrator for the reorganization of the company.

Saab had stated that the reorganization plan will be introduced to creditors within three weeks of filing it. For several months, the struggling company had been trying to find funding from different investors.

Since April, production had been on hold as suppliers stopped providing parts when Saab failed to pay them. The salaries of its workers were unpaid in August. Last Wednesday, Saab CEO Victor Muller said that it owes 150 million euros ($210 million) to suppliers.

Topics: saab, sweden

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The man sitting at the top of the performance division of Mercedes-Benz – Tobias Moers – cryptically indicated that the Mercedes-AMG GT4 could be really coming. Moers, chief executive of...
by - January 18, 2017
The 2017 Detroit Auto Show (2017 North American International Auto Show) has been exciting and thrilling. Several new concepts and production vehicles were announced and unveiled, with a number of...
by - January 18, 2017
Your 2017 Volkswagen Golf Facelift could get as sporty looking as the Golf R with the new R-Line packages. But without the sporty run and the premium price. Set to...
by - January 17, 2017
Whether or not you’re a tech addict, you realize that the digital revolution is now moving at high speed. Before you know it, there’s already a new one on the...
by - January 17, 2017
We really couldn’t deny that quite a number of Audi customers and would-be-buyers are intently waiting for higher performance RS versions of the Audi A4 and A5. Of course, these...
by - January 17, 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