Saab's Credit Protection Request Rejected in Swedish Court
ZEEWOLDE, THE NETHERLANDS – Swedish Automobile N.V., parent company of Saab Automobile, announced that the district court in Sweden rejected the automaker’s proposal for a voluntary reorganization.
The company filed for court protection from creditors, as part of the reorganization plan, on Sept. 7.
Saab Automobile held a press conference where its Chairman and CEO Victor Muller confirmed that the company would appeal the decision. He said he was surprised and disappointed by the decision, as he thought the company had satisfied the burden of proof necessary for approval of a reorganization application.
The court's opinion was that it was unclear how the company will end its liquidity crisis and continue to do business. Chinese authorities have not approved the EUR 245 million equity contribution of Pang Da and Youngman, for example. Saab announced that it plans to submit its appeal to the court on Monday, Sept. 12, 2011.
“As the company now finds itself in a vulnerable situation, we have contacted the company’s stakeholders, including suppliers who have claims on Saab and the unions, in order to maintain a dialogue on the situation,” Muller said.
The video below is from the press conference with Muller.