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.

Monday, April 16, 2012

Account of bankruptcy inventory discussed in District Court

Tuesday last week the bankruptcy administrator's account of the inventory of the Saab bankruptcy estate was handed in to the Vänersborg District Court. Today former Saab CEO Victor Muller together with members of the former management of Saab and representatives of creditors were asked by the court to make their comments on the account.

From the former management of Saab Victor Muller, Martin Larsson, Christina Geers and Johan Formgren were present. There were also former Saab accounting employees present.

Guy Lofalk, which managed the reconstruction of Saab which lead to a bankruptcy filing, was also present.

To the court the bankruptcy administrators could report that since the account was handed in last week, additional debts have been identified and some debts have been reduced.

First to comment the account was Victor Muller.

Victor Muller told the court that there were some accounts receivable missing. According to him, reconstruction administrator Guy Lofalk is liable to pay damages for the wrong-doing he did as reconstruction administrator prior to the bankruptcy filing. In addition, Muller said that there are more claims in relation to breach of contract and other damages.

Except for this, Muller said that he agreed with the bankruptcy administrator's inventory account, and Muller also swore to this in court.

Also Fredrik Gyllefjord, Martin Larsson, Christina Geers, Johan Formgren and Mikael Sand, who are either former Saab employees or Saab management members, all swore that the account of the inventory, with only some minor additions and adjustments.

Update: Swedish Automobile, Saab's former parent company, has issued a press release concerning Victor Muller's statement in the court:

"In my opinion an additional asset in the form of a claim against the former administrator of Saab Automobile AB, the lawyer Mr. Guy Lofalk, relating to a repayment obligation on the part of his fee which in my opinion cannot be considered to be reasonable. Moreover the claim relates to the damages Saab Automobile AB (hereinafter "the company") has suffered as a result of the actions taken by Mr. Lofalk during his tenure as administrator of the company.

It must be emphasized that Guy Lofalk's assignment as administrator was based on an appointment from the company followed by a decision from the district court. The company's owner, Swedish Automobile N.V., has on the company's behalf paid his fees in accordance with instructions and agreements entered into with Mr. Lofalk. I cannot today specify to what this additional asset amounts today.

In my opinion there is also an additional asset in the form of claim for damages against the law firm Lindahl related to the fact that the firm, through the lawyer Lars-Henrik Andersson, committed to the assignment as new administrator of the company's reconstruction, and then withdrew his commitment. It is, however, difficult to assess the amount of this additional asset today.

We are assessing whether there are additional assets in the form of claims for breach of contract and/or tort which can be made against certain third parties but as per today it is to early too determine whether those claims exist and, if so, the magnitude of such claims."