Wednesday, September 7, 2011

Saab Seeks Court Protection from Creditors, Formulates Reorganization Plan

The way events were unfolding these past few weeks, and from the moment its CEO admitted reorganization was an option, it was inevitable: Saab Automotive NV, which includes Saab Automobile AB, Saab Automobile Powertrain AB and Saab Automobile Tolls AB, filed for voluntary reorganization today at the District Court of Vanersborg in Sweden.

Saab’s goal is to secure protection from its creditors while it submits a viable reorganization plan until the Pang Da and Youngman deal, which has been signed off since July, is approved by the Chinese authorities and cash flow is restored. The initial period of court protection will be three months and, if required, can be extended for up to twelve months.

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