Saab Back From The Brink With Bankruptcy Protection Photo:
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2014_saab_9_3_aero_04 Photo: tmr
2014_saab_9_3_aero_03 Photo: tmr
Trevor Collett | Aug, 30 2014 | 3 Comments

Just 24 hours after Saab appeared to be down for the count, the carmaker has been granted temporary bankruptcy protection by a Swedish court.

The original application was dismissed by the court for being “vague and completely undocumented”, but a second attempt at getting the paperwork right was accepted yesterday.

This means Saab’s owner, National Electric Vehicle Sweden (NEVS), now has additional time to complete talks currently underway with two ‘unnamed’ carmakers (Mahindra is reportedly one of them).

An agreement with one or both of the other carmakers could provide a much-needed cash injection to the Saab project, and give NEVS a chance to repay its creditors.

NEVS announced a halt to production of Saab’s re-born 9-3 in May of this year citing “short-term cash flow problems”, and has spent the weeks and months since fighting to avoid a compulsory bankruptcy declaration.

Supplier Labo Test submited and then withdrew an application to a Swedish court to have Saab once again declared bankrupt, but NEVS still owes the supplier AU$563,000.

A report by Reuters suggests combined debts to Labo Test and other creditors amount to nearly AU$62 million.

NEVS will also be fighting to keep its rights to the ‘Saab’ name, with defence firm Saab AB claiming the bankruptcy protection agreement is grounds to terminate the separate ‘naming’ agreement.

A successful financial revival from NEVS should see it retain the rights to the Saab name, but for now Saab’s future once again hangs in the balance.

MORE: Saab News and Reviews

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