Yesterday, Saab announced that its request for government protection was denied by a Swedish court, citing that the court feels that the automaker's proposal for a voluntary reorganization would not work. Furthermore, it is unclear to the court whether or not the proposed €245 million from China's Pang Da and Youngman companies will be enough to fix the Swedish automaker's financial woes (assuming the Chinese government approves this equity contribution). Saab disagrees with the court's interpretation of the request for government protection, and now plans to file an official appeal on Monday, September 12. Full release after the jump.
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SAAB AUTOMOBILE UPDATE ON VOLUNTARY REORGANIZATION
Zeewolde, The Netherlands, 9 September 2011 - Swedish Automobile N.V. (Swan) announces that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) aim to submit their appeal on the District Court's decision to reject Saab Automobile's proposal for voluntary reorganization on Monday September 12, 2011.

In yesterday's decision, the District Court argued that the application of Saab Automobile lacks evidence that the purpose of a formal reorganization can be fulfilled. The Court is of the opinion that the first reorganization of Saab Automobile cannot be considered to be a successful one. It is further unclear to the Court whether - and if so when - the Chinese authorities will approve the EUR 245 million equity contribution of Pang Da and Youngman and whether the planned funding will be sufficient to structurally solve Saab Automobile's financial problems. The Court finds that it is unclear how Saab Automobile will be able to end the liquidity crisis and continue its business. The current stops in production are likely to have resulted in considerable loss of the goodwill of the company and an impairment of the Saab trademark.

Saab Automobile disagrees with this interpretation of the voluntary reorganization proposal and aims to submit its appeal on Monday September 12, 2011. After the court has received the appeal it is expected that a decision on the appeal is taken soon after.

In the meantime, Swan and Saab Automobile continue discussions with several parties about obtaining additional funding for the short term.

Swan will update the market on further developments.


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  • 13 Comments
      JF
      • 3 Years Ago
      A few million here and there won't save Saab; they needed a BILLION dollar, yesterday!
      • 3 Years Ago
      [blocked]
        Drew
        • 3 Years Ago
        Judging by some of the popular offerings by GM, Honda, and Toyota, I think you're quite wrong with your assessment. Dull cars sell quite well.
          • 3 Years Ago
          @Drew
          [blocked]
        hobbesfanmaster
        • 3 Years Ago
        Shut up and take the Saab for a test drive. You'll say otherwise.
      Kimura
      • 3 Years Ago
      It'll be a real shame if Saab can't fix themselves. Someone in my town bough a dark blue 9-5 and its a stunning car in person. Would be a real shame not to see more of those.
      starsixnine00
      • 3 Years Ago
      I don't understand all this negativity toward SAAB. "Please die already?" C'Mon. SAAB is a large employer in Sweden. The shutdown of SAAB would be traumatic to the local economy. Why would you wish that upon someone? How would you like it if someone bashed your employer continually, pleading for them to go under so that YOU would be out of a job? It's not like SAAB's failure or survival will affect you. They aren't using your tax dollars and they aren't reaching into your pocket for survival. The company has certainly fallen on hard times and I wish them the best. Creating fewer choices in the market is never a good idea because in the end, the consumer is the loser. The new 9-5 is a terrific car. I don't care if its based on a GM platform. Even the 9-4, while completely overpriced, is still a very nice car. Furthermore, you really have no idea what you're talking about when you call SAABs boring (VW, HONDA, TOYOTA, FORD, GM all have similarly "boring" offerings). In fact, many of the non-boring cars these days are being built by the likes of KIA and HYUNDAI.
      b
      • 3 Years Ago
      I love you Saab, but would you PLEASE DIE ALREADY?!
      dukeisduke
      • 3 Years Ago
      About the only thing unique about their cars nowadays is the ignition switch down between the seats. Just about everybody has front-wheel-drive, safety equipment (now mandated by regulations), and aerodynamic styling. What is the point of Saab anymore?
      dukeisduke
      • 3 Years Ago
      Maybe they should change their logo to feature a zombie. "Saab - The Undead Car Company!"
      Jim
      • 3 Years Ago
      Saab will come through this and be a viable automaker. The fight wouldnt have continued for this long if it was not meant to be. With a rich company history and extremely loyal customer base, Saab isn't going anywhere for a while. Who pissed in Jelly's Cherrios this morning? Maybe when he's driving his Hyundai Accent home from the Super Walmart tonight he'll re-think his choise words.
      tenspeeder
      • 3 Years Ago
      Someone Always Avoiding Bankruptcy
      alphalimaindigo
      • 3 Years Ago
      If they can get those funds from China, and also gain a good market share in China they are golden. Good thing about China is Saab gets to start fresh in China.
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