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, October 20, 2011

Saab told to terminate voluntary reconstruction

This can't be good news... A press release from Saab where Saab informs that the administrator of the reconstruction has told Saab to terminate the reconstruction.

The press release:

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces it has been informed that the administrator of the reorganization, Mr. Guy Lofalk, will apply for termination of the voluntary reorganization of Saab Automobile AB (Saab Automobile) and two subsidiaries at the Swedish court in Vänersborg.
In spite of the funding commitment of North Street Capital LP which was published earlier today, the administrator who leads the reorganization, Mr. Guy Lofalk, will file an application at the Swedish court to terminate the reorganization process. Saab Automobile shall contest this application and request for continuation of the voluntary reorganization process.
Simultaneously, Saab Automobile shall apply at the court for replacement of Mr. Lofalk as administrator.

If Saab is forced to exit the reconstruction process, Saab will once again be in the position to face bankruptcy filings. It is also unknown if the funding from North Street Capital which was announced earlier today, will be followed through if Saab is forced out of reconstruction. Swedish Radio does however report that a spokesman from North Street Capital confirms that they are presently in a meeting with Saab and Victor Muller.

To Reuters the administrator of the reconstruction, Guy Lofalk who went behind Saab's back earlier this month when conspiring with the Swedish Government and trying to sell Saab to Geely, says that there is not enough money to follow through the reconstruction.

"The money is not enough to continue the reorganization," Lofalk told Reuters.

Lofalk also told Reuters that the deal with the Chinese has not been finalized. The Chinese want to buy Saab, but are not able to reach a deal with Saab's current owner Swedish Automobile.

"I can just say that the parties didn't manage to reach an agreement on a sale," he said