IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Thursday, September 8, 2011

Saab appeals the District Courts rejection of the reconstruction

In this clip from Swedish TV, Saab's CEO Victor Muller says that Saab will appeal the District Court's decision to reject the reconstruction application. He continues saying that in the meantime Saab will stay in close contact with the other stakeholders including labor unions, supplier organizations and investors to make sure nothing will happen. And I assume "nothing will happen" means asking that nobody files for bankruptcy until the appeal is filed and decided by the Appeal Court.

It is very unusual for a district court to reject an application for reconstruction. And even the Minister of Enterprise expressed surprise over the decision:

"It's very unusual for a district court to say no to a reconstruction," Olofsson said to Swedish news agency TT.

When asked if this means the end of Saab, she would not count out Saab just yet.

"No, I wouldn't say that. It is clear that Saab is in a very difficult situation but it's not the first time. It will be decisive what the unions do. It's very troubling when employees do not receive their salaries," Olofsson said.