SWEDEN: Clock ticking as Saab extends court information delivery

By Simon Warburton | 27 October 2011

A Swedish district court hearing an application from Saab's administrator to end its bankruptcy protection status says the later the automaker leaves its formal opposition, the greater risk it runs.

The Vanersborg court was due to have received Saab's documents by 13:00 Swedish time today (27 October), but nothing so far has been delivered.

The authorities will deliver a decision tomorrow (28 October) on the reorganisation application as there is a creditors' meeting next Monday (31 October) but the reasons for Saab's delay remain unclear.

Yesterday, Saab was locked in Stockholm talks with potential Chinese investors, in a bid to secure further funding and it may be more information on financial backing is being thrashed out but no concrete information is yet available.

"The thing is, we have to make a decision tomorrow on whether the reconstruction continues or not," court secretary Elisabeth Lindstrom told just-auto. "But the later [it] is, the bigger the risk they take.

"We are not going to stop them handing their opinions in, but since they did not hand it in in time, we are not able to guarantee we are able to consider everything. We are also under a time limit here."

Saab confirmed it had not yet submitted documents but that it was in communication with the court and "all affected parties," although it declined to elaborate on those discussions.

"People are working very intensively on this," a Saab spokeswoman told just-auto. "We have been in touch with the court and we have not submitted an official answer...by their deadline.

"What Lofalk's [administrator] papers say is he recommends the reorganisation be halted mostly due to not enough liquidity. What we need to come back with is some sort of answer to that and to confirm the conditions to warrant a reorganisation status are still in place."