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Saab restructuring process in danger

TT/AFP/The Local · 20 Oct 2011, 17:34

Published: 20 Oct 2011 17:34 GMT+02:00

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Guy Lofalk, who has been appointed by the Vänersborg district court in southwestern Sweden to oversee Saab's three-month restructuring process under

bankruptcy protection, had informed the company he would ask that the process be terminated, SWAN said in a statement.

Although the statement did not provide an explanation, Lofalk's decision indicates he does not think the restructuring will be successful.

The District Court will decide whether to approve Lofalk's application. If the application is granted, the bankruptcy petitions from Saab's creditors will be reactivated.

"Saab Automobile shall contest this application and request for continuation of the voluntary reorganisation process," SWAN said, adding that it also planned to "apply at the court for replacement of Mr. Lofalk as administrator."

Saab's Chinese backers have so far only pumped in a portion of the money needed to secure Saab's immediate future. According to the plan, Saab should have received 640 million kronor ($97 million) by Saturday.

SWAN has previously said it doubts Chinese companies Youngman and Pang Da will pay the required money by Saturday.

Saab must urgently secure funding in order to continue the reconstruction.

The company has therefore turned to American venture capital firm North Street Capital for help.

The deal would give North Street 2.4 million shares worth $4.19 a piece and the money would be with Saab on Friday. It would also include a $60 million loan which is still being negotiated.

"Immediate availability of funding is necessary to continue the reorganisation process of Saab Automobile," the company said.

Story continues below…

According to SWAN, the goal is to have completed the documentation by Monday at the latest.

If the planned transactions go through, Saab will receive 66 million kronor from their share issue, and a total of 396 million by next Wednesday.

Saab's wage bill is currently being covered by the Swedish state salary guarantee scheme but this is due to expire on Friday after which Saab will be liable for paying employee wages.

TT/AFP/The Local (news@thelocal.se)

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Your comments about this article

19:48 October 20, 2011 by HenriX
LETTER TO : dear mr Lofalk,

what are you doing?? shutting down can be done anytime!! why not try to do ALL YOU CAN. let the american put in his money, so there is more time to talk with the Swedish government and the chinese. they need time with the administration over there, I know.

and there is more time to maintain the factory in good condition.

and if the chinese already spend money in SAAB they see business in this company, so do I. I don't even work with SAAB or SAAB related companies.!!!!!!!!!!!!

shutting down now is the easy way, about 8-10 thousand families will have a bad christmas. and 2012 won't be any better and why????

there is money next week to go on, what are 5-8 day's.

if it is personel matter, you don't know what to do... step aside and let another person step in!!!

don't let your ego make these Swedish workers to lose their jobs and future.

it has been 4-5 weeks since your appointment by the court?? and already trow the towle, give in.???

so dear mr Lofalk, I hope you will try more & better ( make SAAB's and sell them, the problem will solve itself. just start the proces.)

don't go the easy way out, protect these people and MAKE money!!

Yours sincerly,

HenriX, not a Sweed, not a SAAB employee, just follower of news and FAN & LOVER of your country.
02:49 October 21, 2011 by Eagle63
Take a walk Lofalk !

Let North Street Capitol invest and help save this iconic Swedish brand, so it may once again make great cars like it once did...
08:41 October 21, 2011 by spy

I think this is more complicated that we know, There have been lots of reports saying that Lofalk had buyer for 100% of Saab but Muller blocked the deal because he would personally lose out.
10:00 October 21, 2011 by HenriX

you are correct.

the chinese, as I know them, want ALL. and no partners to discuss with. and lots of money and market(asia)

Victor M wants money, the best deal for himself, he is a business man.

Lofalk wants wat is best for Sweden, he has to talk / answer to Swedish governement, I think. (but I must admit he is a bit of a.......how can I say this.......I think he loves & admires himself most (see lots of internet sites))

but why shut down when there is money (american) to keep things running while thinking over what to do with SAAB.

if the chinese payed millions last week, also to keep things running, so no break down of the factory??

they don't pay when not interested, very clever business man.

so what is the deal:

chinese want all, spend money to keep things running.

Victor M friends (american & russian) also want to invest to keep things running.

Swedish gov wants to keep job's, is bad news to the public. let's KILL 8-10.000 job's in a market (BRIC countries) that is booming. look at the VAG-BMW-MERC-and more car builders sales numbers.

VAG reported they want to increase the number of employees to more then 500.000!!!!!!! it is an article on your site.

great SAAB cuts all job's???????????????????

come on Sweeds stop acting, give the SAAB people their job's and a happy christmes / new year.

AND BUILD CARS AND MAKE MONEY!!!!!!!!!!!!!!!!!!!!!!!!!
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