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BREAKING NEWS: Saab reaches crisis point

By / 10 years ago / Latest News / No Comments

The decision could open the way for unions or creditors to seek bankruptcy for a lack of payment for bills and wages.

According to Reuters, Saab is able to appeal against the decision up until to September 29, but a court spokeswoman said that while Saab had no court protection creditors could still seek to make it bankrupt. The firm had said that it would restructure its operation while under protection, but having gone through the process less than two years ago, the court doubted another round of cuts could make a significant difference.

"Overall, the court finds that it is unclear how the company would be able to solve its liquidity crisis and continue operations," said the decision by the Vanersborg district court in west Sweden.

In the UK Saab GB has said it is ‘business as normal’ saying ‘Saab GB is an independent business and a separate UK legal entity to Saab Automobile.

‘Saab GB and its dealer network will continue to provide servicing, replacement parts and vehicle warranty facilities for Saab customers as normal.’

In June, Saab said two Chinese car companies, Pangda Automobile Trade Co Ltd and Zhejiang Youngman Lotus Automobile, had agreed to take a combined majority stake in the firm. The deals are still awaiting approval from the Chinese authorities.

CEO Victor Muller (Inset) said: ‘Since securing the long-term funding through conditional agreements with Pang Da and Youngman, who both support this voluntary reorganisation, we have focused on securing funding to bridge the period until we receive their funds. We have concluded that a voluntary reorganisation process will provide us with the necessary time, protection and stabilisation of the business, short-term funding to be obtained and an orderly restart of production to be prepared.’

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