Appeals court to review Saab reconstruction
TT/The Local/pvs · 19 Sep 2011, 15:03
Published: 19 Sep 2011 13:09 GMT+02:00
Updated: 19 Sep 2011 15:03 GMT+02:00
The firm gave a cautious welcome to the decision from its headquarters in Zeewolde in The Netherlands advising that the firm was "at ease with the decisino and is awaiting continued developments".
But the appeals court decision does not mean that Saab Automobile will receive an automatic approval for its company reconstruction.
"This doesn't give any indication of the case at hand," said appeals court judge Peter Islander.
According to Islander it could be necessary to study the material submitted by Saab in greater details.
It is as yet unclear when the appeals court will convene to discuss Saab's application for reconstruction, but the matter is expected to be settled in a couple of days.
"It takes longer to motivate and formulate a decision after a reconstruction application," said Islander.
The court's decision on Monday means that the IF Metall union is not required to join the other unions who have filed for bankruptcy against Saab, in order to avoid missing out on state salary guarantees.
The district court of Vänersborg in southwestern Sweden has scheduled in bankruptcy negotiations for next Monday. If the company is allowed to enter reconstruction then it gains formal protection against bankruptcy, and staff salaries will be paid from the state salary guarantee.
The court on September 8th rejected Saab's request for bankruptcy protection, concluding that "there is not enough reason to believe that a company reorganisation would be successful".
Saab Automobile immediately declared its intention to file an appeal of the ruling as the battle to keep the troubled firm afloat continued.
Saab's debts amount to about €150 million euros ($210 million), according to Saab chief executive Victor Muller, and the company has stopped paying its suppliers who have in turn halted deliveries since April.
Saab employs 3,700 people.