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Saab Court Plea Rejected, CEO Planning To Appeal Decision Photo:
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Mike Stevens | Sep, 09 2011 | 1 Comment

Saab's plea for protection from its creditors has been rejected by the Vanesborg district court today, following its application for Voluntary Reorganisation earlier this week.

Announcing the decision today, the court ruled that there is no reason to believe that a reorganisation of Saab's operations would save the company.

Saab said in a statement today that it will appeal the decision, which the brand's owner Swedish Automobile described as disappointing.

As part of its Voluntary Reorganisation application, the company had hoped to have an administrator appointed, guiding a plan to bring an agreement between Saab, its creditors and Sweden's automotive unions.

Saab CEO Victor Muller has confirmed that the carmaker currently owes nearly AU$200 million to its unpaid suppliers.

The company hopes to pay its bills and workers through its AU$320 funding deal with China's Pang Da Automobile and Zhejiang Youngman Lotus, although the Chinese Government has yet to approve the deal.

With the Swedish Automobile's value dropping from 66.7 million to 14.8 million euros this year, it remains unclear if the deal will be approved. It would not be the first time: Chinese authorities stonewalled a deal between Saab and Hawtai Motor Group in May.

For now, Saab's future, and that of its 3700 production workers in Trollhattan, looks bleak.

Filed under Saab sweden News
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