Saab remains confident that the motion to extend its bankruptcy protection for an additional three months will be approved in court and that it will be purchased in whole by one of three remaining interested parties early this summer. Those three parties will not be identified in court documents, according to Saab spokeswoman Gunilla Gustavs, but widespread speculation suggests they include both Fiat and Chinese automaker Geely.
Swedish laws are structured in such a way that a corporation that's filed for bankruptcy can extend its protection a total of three times over the course of twelve months if its business plan is solid. Saab's exit strategy includes a Swedish government-guaranteed loan of 500 million euros from the European Investment Bank and hinges on creditors acceptance of a 25% payback of Saab's current debt load and a slew of desirable new products. What could possibly go wrong?
[Source: CNN Money]