TROLLHATTAN, SWEDEN – This week Saab announced it lodged its appeal against the District Court’s decision to reject Saab’s request for voluntary reorganization and protection from creditors. The automaker also signed a licensing agreement for its Phoenix architecture that will provide bridge financing of 70 million EUR.
Last week Saab filed for voluntary reorganization in Swedish court. The court rejected Saab's request. Also, two of Saab’s employee unions announced they filed for bankruptcy.
“These are unfortunate headlines, however when reading them one should bear the timeline for these competing processes in mind,” said Saab spokesperson Steven Wade, on the automaker’s blog. “The unions need to act on behalf of their members, so a filing like this is not a complete surprise. However, should Saab’s appeal be a successful one and we are granted reorganization, the bankruptcy filing would effectively be rendered moot.”
The deal between Saab and Chinese companies Pang Da and Youngman is moving through the different levels of approval, Saab reported on its blog. The automaker said the deal has passed two of the three regulatory levels necessary for approval. The deal would provide 245 million EUR, and Saab said it expects the approval process to be complete in early November.