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.

Wednesday, September 14, 2011

What will happen today?

Today before lunch time, the Court of Appeal for Western Sweden will received Saab's appeal on Vänersborg District Court's rejection of Saab's reconstruction application.

Saab handed in this appeal 20 minutes too late on Monday for the appeal to reach the Court of Appeal already yesterday. But with yesterday's news that the provincial division of the Development and Reform Commission (PDRC) of China yesterday had approved Youngman and Pang Da's plans to invest in Saab, one can speculate that maybe Saab deliberately handed in the appeal 20 minutes late. Now the court will know that the deal is one step closer to be finalized, and the court will also see that the timetable for the approval holds up.

The first the the court will decide is whether to look at the case or not. The court may decide to reject the appeal all together, but this being such a big and unusual case, we can hope that the court will decide to look at it. A decision should not be expected until tomorrow. If the court decide to look at the case, the creditors will be given an opportunity to express their opinion. And after that the court will decide whether to allow reconstruction or not. TTELA writes that according to the court, this can take a week or a month. It is impossible to say.

At the same time Vänersborg District Court is working on the unions request to declare Saab bankrupt. Saab has been called to hearings 26 September.

As reported yesterday, experts in Swedish law say that whatever comes first of a reconstruction and a bankruptcy is the ruling that applies. In other words, this can become a tight race. The unions have however said that if necessary they will postpone the bankruptcy proceeding in order to let the Court of Appeal first rule on the reconstruction.

So stay tuned!