Saab says today’s (21 September) decision to grant it bankruptcy protection will aid discussions with its myriad suppliers who are owed substantial sums, while staff will receive outstanding wages for a three-month period.
The Swedish automaker was looking down the barrel, but now says the Gothenburg Court of Appeal’s verdict delivered by a three-to-one majority, will allow it to focus on earning money through building cars.
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“This decision will help in our discussions with our suppliers because now everybody knows that the plan is and we have some stability,” a Saab spokeswoman told just-auto from Sweden.
“What this does is bridge the time to get the Chinese investors together with their investment, bridges the time the NDRC (National Development and Reform Commission) will take approve the investments.”
Saab says it expects to exit reorganisation sometime around November this year as a “best estimate” and is declining to discuss what might have happened had its appeal failed.
“We are relieved but we are not going to spend time speculating on what bad scenarios would have [meant],” said the Saab spokeswoman. “We think this is the right decision.”
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By GlobalDataA statement sent to just-auto by Saab noted the Swedish Company Reorganisation Act says an application shall not be approved unless there is reasonable cause to assume the purpose of the reorganisation will be achieved.
“In today’s decision,” noted Saab, “the Court of Appeal has found such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg.
“As a consequence of the Court of Appeal ruling, Saab Automobile will request for the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.”
The Saab spokeswoman said CEO Victor Muller was due to add his comments later today.
