Saab's U.S. dealers threatened to file for a Chapter 7 involuntary bankruptcy petition against Saab Cars North America if the carmaker fails to make them preferential creditors. The dealers demand transparency in Saab’s liquidation. They also demand warranties, which range from $10,000 to $200,000, for unsold new cars and reimbursement for losses incurred by heavy discounting.
The dealers also want proceeds from sold Saab cars to be deposited at an escrow account rather sending them straight to Saab Automobile. The dealers also want on-site independent auditing team to monitor Saab Cars North America’s daily operations.
"We expect Saab to be 100% forthcoming," said Leonard Bellavia who represents 145 of Saab's 188 U.S. dealerships. Bellavia said his clients will move for the unit’s liquidation if “any assets are being wasted or diverted.”
Dealers have neither received parts nor payment for warranty work and incentives since Saab Cars North America suspended operations on Dec. 19, 2011, when Saab Automobile AB filed for liquidation. Saab appointed McTevia & Associates to manage its U.S. operations. [source: Autonews]