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, December 7, 2011

Administrator to ask court to end reconstruction of Saab

Updated with the confirmation from Saab that the administrator will apply for the termination of the reconstruction. Added a time schedule

Dagens Industri reports that a well placed source says that the court appointed administrator of the Saab reconstruction, Guy Lofalk, will go to the Vänersborg District Court today and ask that the court ends the reconstruction of Saab.

According to a source of DI, Lofalk can not accept the latest attempt at saving Saab. In addition, Saab has completely run out of money. The $ 15 million which Youngman was going to tranfer to Saab has not been paid seeing that General Motors would not accept the latest proposed ownership arrangement.

When Lofalk asks the court to the end the reconstruction, Saab will get approx. one week to respond. And then the court will decide. And even if the court could decide to end the reconstruction, it does not necessarily mean the end of Saab. Even if Saab then will be face with bankruptcy requests sent in to the court by some of its creditors, a bankruptcy hearing must be held before the court can declare the company bankrupt. And this process will also take days and maybe even weeks.

In other words, this ain't over yet!

Update: Saab has issued a press release confirming that they have been informed by the administrator that he will apply to the court to terminate the reconstruction process. 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 with the District Court in Vänersborg, Sweden.
Saab Automobile and its creditors have approximately five to six days to submit their view to the District Court before the Court takes a final decision about termination of the reorganization. The management of Saab Automobile will consider future steps and continues the current discussions with Youngman about the necessary funding to pay the wages and be able to continue the voluntary reorganization.

Update II:  Here is the time schedule according to TTELA:

7. December:  Administrator Guy Lofalk apply to District Court to terminate reconstruction
15. December 13:00: The three Saab companies (Automobile, Tools and Powertrain), creditors who were present at the creditors' meeting on October 31th, and the creditors' committee will all have until this date to give their opinion on the issue.
16. December 14:00: Vänersborg District Court will annouce its decision whether to terminate the reconstruction or not.