TROLLHATTAN, SWEDEN – Saab Automobile and its subsidiaries received approval for their voluntary reorganization and protection from creditors by the Court of Appeal in Gothenburg, Sweden.
Earlier in September, Saab filed for voluntary reorganization but the court rejected the filing.
Saab said the purpose of the voluntary reorganization process is “to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions by Pang Da and Youngman.”
The Swedish Company Reorganization Act states that an application by a company won’t be approved unless there is reasonable cause to assume the reorganization will achieve its purpose. With this approval, the automaker said it was able to provide the court with information that assures the reorganization will succeed.
Saab said that 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.