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Saab Files For Voluntary Reorganisation, Court Protection From Creditors Photo:
 
 
Mike Stevens | Sep, 08 2011 | 0 Comments

Saab is seeking court protection from its creditors this week, following months of financial struggles, production halts and strained relations with unpaid suppliers.

In a bid to raise funds, restart production and avoid a union-led bankruptcy petition, Saab announced today that it has applied for Voluntary Reorganisation with the District Court in Vanesborg, Sweden.

Call it déjà vu or inevitability, Saab is treading familiar ground once again: early last year, the company narrowly avoided the grave when troubled parent GM sold the brand to Spyker Cars and its diehard Saab-loving founder, Victor Muller.

The news comes just over a month after Saab announced it would restart production at the end of August, thanks to new funding secured through the sale of 50.1 percent of its property unit.

Muller is optimistic, citing a rejuvenated product portfolio, deals with Pang Da and Youngman for access to the Chinese market, and some 11,000 orders ready to be filled when production begins again.

“While the voluntary reorganization process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process,” Mr. Muller said in the statement.

Saab's assembly line has been quiet since June, and its workers have suffered delayed wage payments three times since the brand's rebirth under Spyker.

The voluntary reorganisation process will cover Saab Automobile AB, Saab Automobile Powertrain AB and Saab Tools AB. All other entities, including Saab Cars Australia, are excluded from the reorganisation.

 
Filed under Featured Saab News
 
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