If this whole making cars thing doesn't pan out, Victor Muller and his team at Swedish Automobile N.V. would appear to have an excellent career in magic ahead of them. The executives behind troubled automaker Saab have earned the right to reorganize under government protection thanks to a ruling by the Court of Appeal in Gothenburg, Sweden. This, after being denied the same privilege by the District Court in Vänersborg on September 8.
The Swedish government's voluntary reorganization approval suggests that Saab representatives were able provide blueprints for the automaker that demonstrate a reasonable chance for future financial success. Saab has been waiting for the release of promised monies from Chinese automakers Pang Da and Youngman (deals hung-up pending approval by the Chinese government), and other parties have also expressed interest in supporting the marque. Saab insists it is merely looking for short-term funding and legal protection because it has longer-term financial partners and a business plan already lined up.
As a result of the new ruling, Saab will now have at least three months to undergo reorganization, though that deadline can be extended by the government if the court feels that reasonable headway is being made. During that three-month period, the Swedish government agrees to pay the wages of Saab employees.
As a result of this court victory, Muller and Swedish Automobile are also requesting the cancellation of bankruptcy filings by several of its unions. Follow the jump to read Saab's official statement.
Zeewolde, The Netherlands, 21 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) received approval for their proposal for voluntary reorganization from the Court of Appeal in Gothenburg, Sweden today. The purpose of the voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions by Pang Da and Youngman.
The Swedish Company Reorganization Act says that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganization will be achieved. In today's decision, the Court of Appeal has found that such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg, Sweden.
As a consequence of the Court of Appeal ruling, Saab Automobile will request for the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.