Thursday, September 8, 2011

Swedish Court Rejects Saab's Reorganization Plan, is this the End?

The (digital) ink on our story about Saab North America's hopes and dreams had barely dried when news came in that a Swedish court denied Saab Automobile's voluntary reorganization application that would have protected the company from its creditors, which include the labor unions and parts suppliers.

Saab was trying to win some time and complete a deal with Chinese investors. However, the Vänersborg district court ruled that it could not see how the Swedish automaker could secure additional funding to continue its operations.

“It appears unclear if –and if so, when- the relevant Chinese authorities will approve the agreements”, the court said.

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