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Court approves Saab's bankruptcy protection bid

AFP/The Local · 21 Sep 2011, 14:06

Published: 21 Sep 2011 13:04 GMT+02:00
Updated: 21 Sep 2011 14:06 GMT+02:00

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"The appeals court reverses the district court ruling and allows Saab … to reorganise," the Appeals Court for Western Sweden said in its decision.

The ruling places on hold thousands of individual requests that Saab be declared bankrupt by company employees and union members who have yet to receive their August wages.

It also makes it possible for Saab's around 3,700 employees to receive their salaries.

Saab also has towers of unpaid bills from suppliers, some of which have also requested it be placed in bankruptcy.

The appeals court said the district court's finding that Saab was lacking in the goodwill and brand strength needed for the reorganisation to succeed was unfounded and gave the company three months to turn itself around.

"In this case, the appeals court deems that a more in-depth probe could show that there is a basis for a successful reorganisation," it said.

After 12 weeks, the bankruptcy protection would be lifted if no extension request had been filed and granted, it said.

Saab's Dutch parent company Swedish Automobile has argued it only needs to keep its creditors at bay until regulatory approval goes through for its anticipated cash injection of €245 million ($335 million) from its

Story continues below…

Chinese partners Pang Da and Youngman.

The company, which says it has about €150 million in outstanding debt, has said it expects that cash influx in November.

AFP/The Local (news@thelocal.se)

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Your comments about this article

13:44 September 21, 2011 by Eagle63
Like I said; we ain't dead yet...!
15:17 September 21, 2011 by millionmileman
To all the Naysayers it takes a lot to keep a SAAB down. Here's to the next Million Miles!

16:03 September 21, 2011 by J Jack
You mean a confused Chevy ..
17:08 September 21, 2011 by millionmileman
@ J Jack

No. I mean SAAB. In fact the new 9-4 x was designed by SAAB and Cadillac engineered its SRX after it. Go and test drive a new 9-5. Now that we have a chance SAAB will be releasing more model choices than at any time in its history and you will see the state of art innovation, like electronic AWD just for starters.

They still build the world's safest cars and I can personally attest to that.
17:35 September 21, 2011 by robfrey1
Good news!! When I replace my 2000 9-3 with over 200k on the motor I want another Saab. I am reluctant to buy another Saab if parts would not be availble. Without a doubt, the best car I have ever owned. I am not interested in BMW and Volvo does not have the "driving" spirit that a Saab has. The only car I drove that has that spirit was a Alfa Romero GTV6.

Long live Saab!!!!
22:31 September 21, 2011 by orlandoswede
Wake up you Swedes, at least have some faith in the great car company SAAB! I

If you can't write something positive, don't write at all.
04:32 September 22, 2011 by Eagle63

I recently drove a '97 9000 2.3T, and it stil feels way better than current Audis... truly unbelievable..
17:53 September 25, 2011 by hjoian
@robfrey1. Anyone who has owned an Alfa GTV6 is a true car buff. However, find the same driving qualities with reliability,you then have Saab! I drove an old 9000 for a short while some years back,it was a complete dog,rusty,faded paintwork, shredded interior,and it stank! 460,000 miles, started every morning and never let me down,dog, but a reliable one......i would have another.
03:30 September 26, 2011 by robfrey1
hjoian: Yes, your assessment is true. Alfa's were not reliable, I have never owned one but have driven them. Mad respect for Alfa. The Saab has been bullet proof and a blast to drive. I am rooting foe Saab. I saw a new 2011 9-5 on the road the other night...very striking car. If I could afford I would take the plunge!!!!
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