Saab Automobile and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB is included it the filing which will be done at the district court in Vänersborg at nine o'clock local time.
Saab Automobile Parts AB and overseas subsidiaries is excluded from the filing.
Both Chinese companies Pang Da and Youngman supports the reconstruction.
If the reconstruction is approved by the court, the court will appoint an administrator. Saab has suggested Swedish lawyer Guy Lofalk who was administrator during the last reconstruction Saab went through in 2009.
Some points about the proposed reconstruction:
- A reconstruction entails the best preconditions for using the current limited financial resources in the most efficient way.
- The purpose of the proposed reconstruction process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions of Pang Da and Youngman.
- Saab has formulated a reconstruction plan, to be presented to creditors in more detail within three weeks, which includes a number of aspects aimed at lowering its cost-base and creating a viable, competitive and independent organization.
- The reconstruction will be executed over an initial period of three months. If required, the reorganization period can be extended by another three months, up to a maximum of twelve months.
- The administrator will apply for the Swedish state's wage guarantee scheme to allow wage payments to all Saab Automobile employees to be made.
- August salaries are expected to be paid within a short time frame following the court approval.
- Saab Automobile aims at full redemption of outstanding debts to its creditors and is thus confident that the reconstruction will obtain the support of the creditors.
- Saab is confident that additional short-term funding for the reconstruction period will be secured and is currently in negotiations with several parties about obtaining such funding.
Victor Muller, CEO and Chairman of Saab Automobile, said:
"Since securing the long-term funding through conditional agreements with Pang Da and Youngman, who both support this voluntary reorganization, we have focused on securing funding to bridge the period until we receive their funds. We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared."
"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. The potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market."
"I would also like to express my deep gratitude to our employees, dealers, suppliers and all other stakeholders who have been so patient and understanding in the past trying months. I realize that we have severely tested their patience, but it has been heartening to see that in general, our employees, dealers, suppliers and other stakeholders have stood by us through this tough period. I look forward to continuing these relationships and collectively start building a brighter future for Saab Automobile."
