An outside administrator was appointed by Saab to supervise its operations in North America and the possible wind-down or sale of the company if its parent operations are unable to emerge from bankruptcy. Saab North American COO Tim Holbeck announced this move last Wednesday. The administrator is McTevia & Associates, a management and financial-consulting service with offices in suburban Detroit and Florida.
McTevia is responsible for protecting the value of Saab’s North American business for creditors or any potential buyers. He would also be making sure that no more debt is incurred.
Holbeck told reporters during a conference call that the business has “basically stopped.” The warranty coverage of Saab was halted however, former owner General Motors said that it will cover the vehicles sold under its oversight.
He said that the company is trying to find a solution so that the warranty coverage would be reopened. There are around 2,400 vehicles that remain in Saab’s dealership inventory.
To achieve independent oversight, Saab is appointing an administrator instead of using the U.S. federal bankruptcy court. Creditors may still compel Saab to file for bankruptcy.
But then, Saab’s outlook seems bleak. Holbeck noted that there are “not very good odds” to prevent liquidation. Earlier this week, Saab fell into bankruptcy after a deal to sell it to Chinese investors failed to prosper. In the U.S., Saab sold 5,340 vehicles this year, standing for a 22% increase.