Saab North America acknowledged that the chances were exceptionally slim, but it hoped to avoid bankruptcy long enough to give another company a chance to buy it. Shortly after Saab NA appointed a third-party administrator, McTevia & Associates, it was decided there was no way to save the company short of liquidation, and on January 23, the administrator announced plans to file for Chapter 7 bankruptcy.

But Saab NA was beat to the filing by a group of 162 out of the 188 Saab dealers, who filed for involuntary Chapter 11 bankruptcy in Delaware. The dealers said last week they were going to file for Chapter 7, but instead chose Chapter 11 because of its lower costs and in case China's Youngman or Turkey's Brightwell Holding's bid for Saab NA's parent succeeds and they want to restart operations here. The document was filed in Delaware because the dealer body feels they'll get better hearing "further away from Detroit." Dealers also wanted the force of court orders to back up any decisions made, not that of a third-party administrator.

Underneath all the legal machinations, though, if estimates from Saab NA dealer attorney Leonard Bellavia are accurate, then the parties could emerge without getting financially kneecapped. When McTevia announced its plan to file, Bellavia suggested that Saab NA's liabilities were $10.5 million and assets at between $75 million and $125 million. With no more parts on the way and 2,400 cars on lots, McTevia had earlier said that the parts distribution business is "the only meaningful asset."


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  • 16 Comments
      tributetodrive
      • 2 Years Ago
      what did saab na expect them to do? Hopefully the dealers can go with better more successful brands next time.
      CarSnaab
      • 2 Years Ago
      Thanks for the impartial and insightful coverage. Autoblog has been a great source for Saab news that isn't too optimistic like saabsunited or downright hateful and wrong like the less than truth about cars.
      marybfitz1
      • 2 Years Ago
      I have a 2005 Saab that has been in the "shop" for over one month trying to find a part for the computer that allows the key to work to start the engine. What happens to those of us that are owners? Where do we go to find parts? If I ever get this car back I will pick it up and drive directly to the Toyota dealership and trade it for a new car. Any one want to buy a broken Saab convertable?
      • 2 Years Ago
      [blocked]
      philwillnukum
      • 2 Years Ago
      i can see it now...some enterprising person will buy up all the parts from saab for pennies on the dollar...then sell them to those who want to keep their cars running at rediculously inflated prices
      kevsflanagan
      • 2 Years Ago
      So let's see... 90% of the Saab NA dealers are pretty much telling Saab NA "We're done!" and wish to wash their hands of it all. Not that I can blame them. The past year has been rough and considering no actual "new" Saab cars have been made since April I think they stood by as long as they could. Shaw Saab had to close its doors last week due to no inventory and sold its operation/land to Herb Chambers. These dealers doing this allows them to walk away if you will and prevent their business's from going legit belly up.
      50 AKA Ferrari
      • 2 Years Ago
      I wonder if I can buy a new Saab for $1. Still a POS car though. Die already.
        albrechteja
        • 2 Years Ago
        @50 AKA Ferrari
        We own a 99 Saab 9-3 SE Convertible and it is a wonderful car. 136,000 miles on it and runs like a champ. I doubt there ever would have been a company for all these years if they were a POS car. Not at $48,000... Go back to your KIa that needs a riiculous warranty because it's cheap junk and stop commenting on a car you could never afford anyway.
      Ernie Mccracken
      • 2 Years Ago
      You guys need to get rid of these AOL pop-ups!
      • 2 Years Ago
      [blocked]
      • 2 Years Ago
      [blocked]
      Stephen
      • 2 Years Ago
      Small bits of content which are explained in details, helps me understand the topic, thank you! National Help Center Law Group (www.nhclawgroup.com/contact.html)
      nick
      • 2 Years Ago
      its seems that the only thing saab can do right is build fighter planes for the swedish airforce
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