Saab has expressed “surprise” at yesterday’s (8 September) rejection by a Swedish district court of its application to enter voluntary reorganisation, but has dropped hints it may provide further financial backing detail when it submits an appeal next Monday.
Three judges sitting at the Vanersborg District Court threw out Saab’s request, which would have allowed creditor protection and the triggering of State funds to pay overdue staff wages, with any potential bankruptcy claim now appearing to lie in the power of unions.
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The court said Saab had not detailed enough reasons from where the automaker would secure financing ahead of any proposed investment by Youngman and Pang Da, a view that has puzzled Saab.
“We were all surprised frankly,” a Saab spokeswoman in Sweden told just-auto. “Intellectually, we knew it could be yes, it could be no, but it really was a surprise. We thought we had submitted adequate information – the reality is apparently not enough to convince this court.
“At this point there are several different sources where that money could come from and we are not being specific. I wonder if we will be more specific in that appeal we will submit on Monday, it may well [be] more specific.”
Saab has also taken issue with a further view of the court that the current stops in production are likely to have resulted in a “considerable loss” of goodwill and an impairment of the Saab trademark.
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By GlobalData“Saab Automobile disagrees with this interpretation of the voluntary reorganisation proposal and aims to submit its appeal on 12 September,” noted a statement from the manufacturer. After the court has received the appeal it is expected a decision on the appeal is taken soon after.”
The automaker also reiterated its gratitude to its unions, who have shown considerable collective restraint despite their members enduring a succession of late salary payments, including those outstanding for August.
