Saab delays a court decision on whether it continues to be protected from creditors

Article by Christian A., on December 14, 2011

Saab’s motion to delay a court decision on whether it continues to be protected from creditors was granted. From Friday, the court hearing has been moved to Monday. This gives Saab additional time to finalize a funding agreement with Chinese investor Zhejiang Youngman Lotus Automobile Co. Ltd. The Swedish district court in Vanersborg will decide if Saab retains its court-supported reorganization.

In an interview with Automotive News Europe, Saab spokesman Eric Geers said that it has requested for this hearing so that it will have the chance to make its arguments and respond to the judge’s questions.

Guy Lofalk, the administrator tasked with the automaker's restructuring, last week requested that the court end the reorganization since Saab doesn’t have the money anymore.

Last Tuesday, Saab CEO Victor Muller said that Youngman gave the company got 3.4 million euros as a first payment. This is only a partial payment. Geers declined to say the full amount that Youngman intended to give but he said that talks with the Chinese investor are progressing.

He added that what Saab is currently working on is to pay salaries and the reorganization costs. Swedish Automobile, which is the owner of Saab, has entered a series of deals as it attempts to keep the automaker afloat.

However, the latest deal with Chinese investors was rejected by former owner General Motors, which owns the licenses for Saab technology.

For several months now, the output at Saab's plant in Trollhattan, Sweden, was halted because it was unable to pay its suppliers. The salaries of Saab’s workers due on Nov. 25 have also not been paid yet. [source: Autonews]

Topics: saab

If you liked the article, share on:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 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