SAAB Abandoned By GM, Files Bankruptcy.

[1TUFFUTE]

surely they cant be seriously getting away with that

[nipper575]

I can't think of a reason why anyone would even consider buying a new Saab with all that's going on. They're having enough trouble surviving as it is.

If they pull through this, to say that I'd be gobsmacked would be a huge understatement.

[vztrt]

http://www.autoblog.com/2011/08/22/s...be-by-swedish/

Saab has cash to cover major debts according to probe by Swedish agency
By Jeff Glucker RSS feed
Aug 22nd 2011 4:01PM

Sweden's debt agency must've figured out the PIN to a handful of Saab bank accounts. In one of them, the agency found 5.1 million kronor, which translates to nearly $800,000 USD. That amount is enough to cover debts owed to the first four companies waiting for funds in the pay-me-now queue.

The debt agency has reached out to other banks holding Saab accounts in order to get the full picture of the automakers financial position. Though the 5.1 million SEK covers a quartet of major debt holders, the total amount owed is much higher. According to the agency, 23 claims have been posted against Saab with a total value of 50 million SEK. That works out to nearly eight million USD.

Depending on the findings of the agency's probe, Saab could either be forced to pay off its loans or pushed toward the court with bankruptcy the likely outcome... unless regulatory approval is secured for long-term funding before that comes to pass.

News Source: Wall Street Journal

[vztrt]

http://www.autoblog.com/2011/08/23/s...be-late-again/

Saab warns salary payments may be late... again
By Jeremy Korzeniewski RSS feed
Aug 23rd 2011 2:45PM

Saab has announced "that there is a risk of delayed payment of August wages to Saab Automobile employees as some of the funds that were committed by investors may not be paid in time to effect such salary payments."

This news should come as no surprise to anyone paying attention to the Swedish automaker's dire situation over the last several months, but this concluding statement may raise a few eyebrows: "There can however be no assurance that the necessary funding will be obtained or the funds collected." Sure, deep down we all know that, but it sounds pretty ominous coming from the company's official PR department, no?

PRESS RELEASE

SAAB AUTOMOBILE INFORMS EMPLOYEES ON SALARY PAYMENTS

Zeewolde, The Netherlands, 23 August 2011 - Swedish Automobile N.V. (Swan) and Saab Automobile AB (Saab Automobile) announce that there is a risk of delayed payment of August wages to Saab Automobile employees as some of the funds that were committed by investors may not be paid in time to effect such salary payments.

Saab Automobile is taking all necessary actions to collect these funds in time and continues discussions with various parties to obtain additional short-term funding so that the payments can be made, as well as resume sustainable production. There can however be no assurance that the necessary funding will be obtained or the funds collected.

[z80]

Tried to buy a small handbrake part for wife's SAAB last week.

Nil stock Australia....ETA no committment.

[vztrt]

http://www.caradvice.com.au/134469/s...-in-two-weeks/

Saab could be pushed into bankruptcy in two weeks
By Brett Davis | August 25th, 2011

Another week and unfortunately another stick is pulled from Saab’s wobbling Jenga stack. Last week we reported Swedish debt collectors were requested to step in to investigate Saab bank accounts to try to retrieve funds to pay outstanding supplier’s bills and employee wages. Saab’s auto unions have now said that if the funds cannot be produced, the unions could ask a court to put Saab into bankruptcy in as little a two weeks.

It’s a sad time for Saab lovers around the world, but Saab is sinking down so deep now that it is going to be very difficult for the company to climb out and return as a competitive automotive brand. And it’s not entirely Saab’s fault. A number of companies have previously promised to invest into Saab only to pull out before the deal was made. This hasn’t helped with production at Saab’s Trollhattan facilities, with operations still on hiatus.

Saab was aiming to pay wages today, but said on Tuesday that payments may be put on hold again if investment commitments were not made in time. If delays do occur, two of Saab’s largest auto unions may begin filing to a local court asking to put Saab into bankruptcy to ensure state coverage of the wages.

Before the filing starts, the auto unions will ensure all employees back the process and will ask Saab for the wages. If the wages are not paid within seven days, the unions could take the issue to the local court to ask to put the company into bankruptcy. Veli-Pekka Saikkala, head of salary negotiations at IF Metall’s headquarters in Stockholm, recently told Automotive News,

“We must start the process, as there’s no alternative to our moving to protect our members’ wages. Later, if we don’t see a solution, we’ll likely be forced to act.”

Saab production has been stopped since early June. The company says it is trying to raise more funds, and hopes to get production back under way in a few weeks’ time.

[janddbone]

What are all the employees doing anyway if their is no production... If the unions seek bankruptcy, they definitely wont be getting any future pay cheques!

[Bossxr8]

Originally Posted by brett.r.johnstone

What are all the employees doing anyway if their is no production... If the unions seek bankruptcy, they definitely wont be getting any future pay cheques!

The company is dead anyway, better to jump in now and get what they are owed before its too late.

There is no coming back from where they are now.

[janddbone]

It goes both ways. Why bite the hand that feeds you, even if the food supply gets interrupted. The company still has no net debt... Plenty of companies worse off, with regards to paying debtors...

[vztrt]

http://www.autoblog.com/2011/08/26/s...rom-creditors/

Saab to file for protection from creditors
By Chris Shunk RSS feed
Aug 26th 2011 1:30PM

To say that Saab has had a rough 2011 would be one heck of an understatement. Sales are trickling slowly, the automaker's Trollhattan plant hasn't consistently produced vehicles since late April because suppliers weren't getting paid, and a failed alliance is making the Swedish automaker look like it has cooties.

Now it appears as though Saab is taking legal steps to keep the company going, as Reuters is citing a public radio report that claims the automaker will soon apply for court protection from creditors. If the courts grant temporary creditor protection, Saab will begin a process of corporate restructuring at the hands of an administrator and company management.

Though Saab has yet to officially confirm its intention to enter creditor protection, the move would seem to make sense given the automaker's string of disappointments and dire finances. The automaker announced earlier this week that it would delay its second-quarter report until August 31, perhaps to buy time until Saab officially engages the courts. That news followed Saab's announcement that August salary payments to employees may be late.

So what would creditor protection do for Saab? The move would likely buy the automaker additional time to drum up more alliances and raise more cash. If Saab still can't secure additional money or find new partners (there has been some success on this front), it appears all but inevitable that the company will dissolve.

News Source: Reuters

[vztrt]

http://theage.drive.com.au/motor-new...901-1jnok.html

Saab's $300m loss
Chris Harris
September 1, 2011 - 3:50PM

Sea of red ink for struggling Swedish car maker as it announces financial results.

The company that owns Saab Automobile is losing almost €15,000 ($20,000) on every car it sells.

Swedish Automobile NV has reported a huge net loss of more than €224 million ($300m) in the first half of this year, compared with €56m ($74.7m) it lost in the first half of 2010.

As the Dutch owner of Saab and Spyker announced its interim financial results overnight, it warns that it could lose the battle to stay alive in the face of bankruptcy, cash flow problems, the struggle to pay its workers and production halts. Saab's Trollhattan plant in Sweden has been mostly idle since April with suppliers refusing to deliver parts until their bills were settled.
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Saab has been looking for funds to stay afloat while it finalises a €245m ($329m) deal with two Chinese companies - Pang Da and Youngman - to take a respective 24 and 29.9 per cent stake in the company as well as distribute Saab cars in China. The deal still requires approval from the Chinese government, however.

The struggling Swedish car-maker sold its plant in a €28m ($38m) deal to sell and lease back its property in June after running out of cash to pay its workers.

The company claimed that its negative equity position would have "no immediate impact on the execution of the Saab Automobile business plan".

"It will come as no surprise that this has been an unbelievably tough quarter for this company," chief executive of Saab and Swedish Automobile Victor Muller says. "Nothing is worse than having to delay salary payments to your loyal employees and they deserve nothing less than my sincere apologies.

"Right now, the focus of Saab management is on working as hard as possible to bring the company back into calmer waters by significantly strengthening our financial position, reaching agreement with all our suppliers on payment and delivery terms and restart production as soon as possible. We are evaluating all available options in order to secure continuity of Saab Automobile."

Saab produced 12,877 vehicles in the first half of the year (up nine per cent on a year ago) and sold 15,194 cars to customers, up 44 per cent from 10,535.

The company made a surprise announcement in July of a new-product joint-venture arrangement with Youngman and Saab Automobile to expand the Swedish car maker's product portfolio with three models that "until now did not form part of Saab Automobile's current and future product portfolio."

The arrangement includes the developing three "completely new Saab vehicles: the Saab '9-1', Saab '9-6' and Saab '9-7'."

The plan outlines that the vehicles will be designed, development and their manufacturing processes honed by Saab at its Trollhattan headquarters while "Youngman Passenger Car will be responsible for providing the necessary financial investments in the joint-venture", presumably meaning they will be built in China.

[vztrt]

http://www.autoblog.com/2011/09/01/s...first-half-lo/

Saab hoping to secure $157M bank loan, posts $324M first half loss
By Jeff Glucker RSS feed
Sep 1st 2011 1:01PM

b is against the ropes, it's the bottom of the ninth with two outs, fourth and goal and [insert other cliched sports analogy here]. The struggles faced by the Swedish automaker have been a constant news item for a long time now – Business deals went south, and the automaker has since been on a downward spiral of collections claims, angry suppliers and unpaid employees. Now comes more news from Trollhättan, and it's a bit of a mixed bag.

The bad news for Saab is that it just posted a first-half loss of $324.4 million for 2011. Beyond the loss, the automaker's working capital fell to negative $548.9 million. (And you thought your account was in bad shape for being $10 in the red due to that stupid overdraft charge.) Interestingly enough, sales are up 33 percent year-to-date compared to last year, but it's not enough to overcome the idling plants and unpaid workers and suppliers.

Good news may arrive today, however, in the form of a $157 million bank loan. Mum's the word on which bank plans to pony up the dough, but insiders say it's one of the top five banking institutions in Europe. This money will be used to pay suppliers and employees, and also to restart production. It won't last forever though, and Saab sees this potential cash infusion as a way for it to survive until its Chinese investors are approved.

News Source: Detroit Free Press, Wards Auto

[vztrt]

http://theage.drive.com.au/motor-new...907-1jxid.html

Saab hits the skids ... again
Barry Park
September 7, 2011 - 5:51PM

Car maker files for the Swedish equivalent of bankruptcy.

Saab, the Swedish car maker that has struggled to regain its feet after it was cast aside by former owner General Motors, has stumbled yet again.

The company has announced it will start the Swedish equivalent of bankruptcy proceedings, appointing an external administrator who will try to help the company recover.

‘‘Swedish Automobile announces that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) will file for voluntary reorganisation today,’’ the company says in a statement announcing its move.
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According to Saab, the administrator will help the car maker introduce changes ‘‘aimed at lowering its cost-base and creating a viable, competitive and independent organisation’’.

Saab chairman Victor Muller remains optimistic that the company can trade its way out of trouble.

‘‘We have concluded that a voluntary reorganisation process will provide us with the necessary time, protection and stabilisation of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared,’’ he says.

‘‘While the voluntary reorganisation process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process.’’

Over the next three months, Saab says it will attempt to attract more outside investment to help it kick-start production at its Trollhatten factory, with the company already in talks with Chinese car dealerships Pang Da and Youngman to raise more money.

The two Chinese companies have already invested heavily in Saab, placing an order for 582 vehicles earlier this year for the equivalent of $30,000 each, and paying up-front in cash.

However, since announcing that deal money woes have dogged the car maker, and in July it said it would not be able to pay white-collar workers. Suppliers also threatened to take the company to court and force payments for outstanding invoices.

Earlier this month the Dutch owner of Saab, supercar maker Spyker, announced a $300 million loss for the financial year, the equivalent of $20,000 for each car it sold worldwide.

Saab says it will ask to the Swedish government to help it pay workers’ salaries for August as part of the reorganisation.

Overseas divisions including Saab’s Australian operations are exempted from the proceedings, the car maker says.

[vztrt]

http://www.autoblog.com/2011/09/07/s...eorganization/

Saab files for government protection, plans reorganization
By Chris Paukert RSS feed
Sep 7th 2011 10:01AM

After a protracted battle for financial stability, Saab has filed for government protection. The official filing submitted this morning in Sweden isn't a liquidation, however, it's a bid for reorganization with the assistance of a government-appointed independent overseer. Saab boss Victor Muller:

"Since securing the long-term funding through conditional agreements with Pang Da and Youngman, who both support this voluntary reorganization, we have focused on securing funding to bridge the period until we receive their funds. We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared."

Under Swedish law, Saab's reorganization plans must be presented within three weeks, though a court-granted extension is possible. If Muller and Co. clear this initial hurdle, the reorganization will have an initial three month window in which to be effected, although that window can be extended in three-month increments for up to a year. While Saab is busy trying to cut costs and rework its infrastructure, its emissaries will also be seeking short-term funding.

For its part, the Swedish government must accept Saab's filing for protection. Further, if the automaker wishes to stay in business, government officials will also need to agree to grant Saab access to the state's "wage guarantee scheme," meaning that Sweden must agree to pay the automaker's employee wages (including August) during the reorganization process. Check out the official press release after the jump.

PRESS RELEASE

SAAB AUTOMOBILE AB FILES FOR VOLUNTARY REORGANIZATION, SAAB AUTOMOBILE PARTS AB AND OVERSEAS SUBSIDIARIES ARE EXCLUDED

Zeewolde, The Netherlands, 7 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) will file for voluntary reorganization today at 09:00 CET with the District Court in Vänersborg, Sweden. Swan and Saab Automobile are of the opinion that, considering Saab Automobile's current limited financial resources, a voluntary reorganization will entail the best preconditions for using existing resources in the most efficient way. The eventual purpose of the proposed voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions of Pang Da and Youngman.

The proposed voluntary reorganization will be a self-managed, legal process under Swedish law headed by an independent administrator appointed by the court who will work closely with the Saab Automobile management team. As part of the process, Saab Automobile has formulated a reorganization plan, which includes a number of aspects aimed at lowering its cost-base and creating a viable, competitive and independent organization. This reorganization plan will be presented to creditors in more detail within three weeks of the filing, although this period could be extended by the court.

Following court approval, the voluntary reorganization will be executed over an initial period of three months. If required, the reorganization period can be extended by another three months, up to a maximum of twelve months. Swan and Saab Automobile are confident that they will secure additional short-term funding for the reorganization period and are currently in negotiations with several parties about obtaining such funding. Funding for Saab Automobile to exit reorganization has been secured through binding agreements with Pang Da and Youngman as announced on July 4, which agreements are, however, subject to obtaining certain approvals.

As part of the reorganization filing, the court-appointed administrator will apply for the Swedish state's wage guarantee scheme to allow wage payments to all Saab Automobile employees to be made. August salaries are expected to be paid within a short time frame following the court approval. With regards to outstanding debts to creditors, Saab Automobile will seek the support of its creditors for the reorganization process and is confident it will obtain this support, particularly because Saab Automobile aims at full redemption of outstanding debts.

Saab Automobile has proposed that the District Court appoints Swedish lawyer Guy Lofalk as administrator, who also was the administrator in the successful 2009 Saab Automobile reorganization. Victor Muller, CEO of Swan and CEO and Chairman of Saab Automobile, and the Saab Automobile management team will cooperate closely with the administrator to execute the reorganization plan. The voluntary reorganization process will cover Saab Automobile AB, Saab Automobile Powertrain AB and Saab Tools AB. All other entities, including Saab Parts AB and all overseas entities such as Saab Great Britain and Saab Cars North America, are excluded from the reorganization.

The reorganization plan contains a blueprint of how Saab Automobile's Management expects to improve Saab Automobile's business model with an emphasis on an independent, lean and competitive organization. Many key elements of Saab Automobile's original business plan remain, as Management believes the objectives of the overall strategy remain intact. Through the roll-out of a fully rejuvenated product portfolio, partnerships with Chinese firms Pang Da and Youngman that will ensure access to the world's largest and fastest growing market, and a strong and global brand, Saab Automobile is well-positioned to realize its objective of becoming a viable independent premium car manufacturer.

Victor Muller, CEO of Swan and CEO and Chairman of Saab Automobile, said:

"Since securing the long-term funding through conditional agreements with Pang Da and Youngman, who both support this voluntary reorganization, we have focused on securing funding to bridge the period until we receive their funds. We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared."

"While the voluntary reorganization process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process. The potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market."

"I would also like to express my deep gratitude to our employees, dealers, suppliers and all other stakeholders who have been so patient and understanding in the past trying months. I realize that we have severely tested their patience, but it has been heartening to see that in general, our employees, dealers, suppliers and other stakeholders have stood by us through this tough period. I look forward to continuing these relationships and collectively start building a brighter future for Saab Automobile."

[vztrt]

Saab slides into administration

http://www.goauto.com.au/mellor/mell...257905000FCBD8

Aussie 9-4X launch timing blows out as Saab buys time with voluntary reorganisation

8 September 2011

By RON HAMMERTON

SAAB’S decision to file for voluntary reorganisation in Sweden could have a silver lining as a potential circuit breaker that might restart stalled vehicle production within weeks.

Saab Australia managing director Stephen Nicholls told GoAuto today that under Swedish law, the decision will mean parts suppliers will be legally obliged to supply components to Saab’s factory in Trollhattan, as long as the money to pay for them is forthcoming.

“Whereas before they (suppliers) were holding off and saying we are not sure about this, the law now says that if we give them an order and some money they more or less have got to give us the parts,” he said.

“This means that we can now start to re-schedule the start of the factory, and get things moving again.

“We have always said that it would take about four weeks from the time it is re-scheduled to the time we get it going again, but that would be four weeks from the time we get the right decision from the administrator.”

Mr Nicholls said that despite the developments at its home base overnight, it was business as usual for the Australian and New Zealand subsidiary of the Swedish company in the wake of the move by Swedish Automobile NV – Saab Automobile’s parent company – to seek court-protected reorganisation under an independent administrator for three months to sort out its parlous financial state.

But Mr Nicholls confirmed that the Australian launch of Saab’s first SUV, the new 9-4X, would now be delayed into the second half of next year after originally being expected in late 2011 or early 2012.

Saab 9-4X production at a General Motors plant in Mexico was shutdown by Saab’s former owner as Saab struggled to pay suppliers, including GM, which cast Saab adrift at the height of the financial crisis.

Re-starting that production by paying GM bills is expected to be a priority for Saab, because a large proportion of the 11,000 outstanding orders for its vehicles are for the medium-sized 9-4X SUV that is built alongside the Cadillac SRX.

“That would seem to be one of the no-brainers as the cars are produced in Mexico so they just ship them over the border and they get to the dealers pretty quickly,” Mr Nicholls said.

Announcing the decision to seek voluntary reorganisation at the District Court at Vanersbord, Swedish Automobile NV (SWAN) said the move would provide short-term stability for the company as it sought short-term funding to tide it over until the arrival of equity contributions from its new Chinese partners, dealer group Pang Da and car manufacturer Zhejiang Youngman.

SWAN has agreed to sell a combined 53.9 percent stake in Saab to Pang Da and a Youngman for €245 million euros ($325 million). The deal is awaiting approval from the Chinese authorities.

SWAN CEO and Saab chairman Victor Muller told employees in Trolhattan that the reorganisation process would present the company with a number of tough issues and decisions, but that Saab Automobile would emerge stronger.

“The potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market,” he said. “I would also like to express my deep gratitude to our employees, dealers, suppliers and all other stakeholders who have been so patient and understanding in the past trying months.

“I realise that we have severely tested their patience, but it has been heartening to see that in general, our employees, dealers, suppliers and other stakeholders have stood by us through this tough period.

“I look forward to continuing these relationships and collectively start building a brighter future for Saab Automobile.”

Saab Automobile has proposed that the court appoint the same administrator who handled the company’s last plunge into reorganisation under GM in 2009, Swedish lawyer Guy Lofalk.

Mr Nicholls revealed that while creditors caught up in the previous Saab administration had been paid only 25 cents in the dollar, the company this time was proposing to pay 100 cents.

“The suppliers all get everything they are owed, which is a very different situation this time around,” Mr Nicholls said from his Melbourne office when he has been fielding calls from dealers and others anxious for news of the latest drama to beset the troubled company.

Mr Nicholls said Saab and its dealers had about 80 cars in stock in Australia, plus a few demos.

“We have enough to last us a little while longer, and we are not immediately in need of new cars, but obviously with the lead times and everything we are anxious to have the factory up and running again so we can get fresh stock in to have a go next year,” he said.

So far this year, Saab Australia has registered just 106 cars, including 30 of its new 9-5 flagship. The remainder are 9-3s, including 19 convertibles.

Saab’s main Trolhattan plant has been closed since April 6 due to cash flow problems, with Saab fighting a rearguard action against creditors – including parts suppliers and employees – that have threatened to push it into bankruptcy.

Saab has about 1000 suppliers awaiting a decision on production. In the first half of this year, Saab produced just 12,877 cars – a fraction of the 80,000 vehicle it had hoped to shift this year.

Saab has been wooing suitors to reinforce its financial situation, and thought it had a deal with small Chinese manufacturer Hawtai before that fell over when the would-be partner got cold feet.

The deal with Pang Da and Youngman was done in May, and despite some advances of cash, production has remained stalled due to failure to pay major suppliers.

Said Saab today: “Funding for Saab Automobile to exit reorganisation has been secured through binding agreements with Pang Da and Youngman as announced on July 4.

“The agreements are, however, subject to obtaining certain approvals.”

Saab said the court-appointed administrator would apply for the Swedish state’s wage guarantee scheme to allow wage payments to all Saab Automobile employees to be made.

“August salaries are expected to be paid within a short time frame following the court approval,” it said.

[vztrt]

http://www.caradvice.com.au/136851/s...cy-protection/

Saab seeks bankruptcy protection
By Brett Davis | September 8th, 2011

Saab is still fighting for its life. The latest news from Sweden is that Saab is filing for bankruptcy protection while it waits for funding from Chinese investors Pang Da and Zhejiang Youngman.

A couple of weeks ago Swedish debt collectors were asked to investigate Saab’s bank accounts to try to produce funds owed to just two of several companies Saab owes money. Saab’s auto unions said that if the funds could not be produced in two weeks, the union would ask courts to put Saab into bankruptcy.

It’s been two weeks now and Saab has not be able to come up with the funds. Saab is now asking courts to approve a voluntary reorganisation which will give the company more time to come up with the money owed. Victor Muller, CEO of both Saab and Swedish Automobile, said in a recent statement,

“We have concluded that a voluntary reorganisation process will provide us with the necessary time, protection and stabilisation of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared.

“While the voluntary reorganisation process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process.”

Muller adds,

“The potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market.”

Saab has agreed to sell off a combined 53.9 per cent stake in Saab to Chinese companies Pang Da and Zhejiang Youngman for 245 million euros ($325 million). The deal just needs to pass Chinese authorities’ approval. Once passed, the deal is expected to be the first step to Saab’s resurrection.

[Resurrection]

http://www.bloomberg.com/news/2011-0...-correct-.html

[vztrt]

http://www.autoblog.com/2011/09/08/s...swedish-court/

Saab request for government protection rejected by Swedish court
By Steven J. Ewing RSS feed
Sep 8th 2011 10:28AM

Seems that Saab just can't catch a break. Yesterday, the Swedish automaker filed for government protection, citing that if approved, the company would undergo a voluntary reorganization. Now, a court has rejected Saab's application for protection.

Saab plans to appeal the court's decision. In a statement, the automaker said that it is "disappointed with the ruling." The bad news is that, unless an appeal works, this could very well be the end of the road for Saab.

Automotive News reports that the Vanersborg district court in west Sweden released a statement regarding the Saab decision. Apparently, the court feels there is no reason to believe that a reconstruction would work

PRESS RELEASE

COURT REJECTS VOLUNTARY REORGANIZATION APPLICATION, SAAB AUTOMOBILE TO APPEAL DECISION

Zeewolde, The Netherlands, 8 September 2011 - Swedish Automobile N.V. (Swan) announces that the District Court in Vänersborg, Sweden today rejected the proposal for voluntary reorganization by Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile). Saab Automobile is disappointed with the ruling and will appeal the District Court's decision.

[vztrt]

http://www.autoblog.com/2011/09/09/s...ion-on-monday/

Saab to appeal court decision on Monday
By Steven J. Ewing RSS feed
Sep 9th 2011 11:44AM

Yesterday, Saab announced that its request for government protection was denied by a Swedish court, citing that the court feels that the automaker's proposal for a voluntary reorganization would not work. Furthermore, it is unclear to the court whether or not the proposed €245 million from China's Pang Da and Youngman companies will be enough to fix the Swedish automaker's financial woes (assuming the Chinese government approves this equity contribution). Saab disagrees with the court's interpretation of the request for government protection, and now plans to file an official appeal on Monday, September 12. Full release after the jump.

PRESS RELEASE

SAAB AUTOMOBILE UPDATE ON VOLUNTARY REORGANIZATION

Zeewolde, The Netherlands, 9 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) aim to submit their appeal on the District Court's decision to reject Saab Automobile's proposal for voluntary reorganization on Monday September 12, 2011.

In yesterday's decision, the District Court argued that the application of Saab Automobile lacks evidence that the purpose of a formal reorganization can be fulfilled. The Court is of the opinion that the first reorganization of Saab Automobile cannot be considered to be a successful one. It is further unclear to the Court whether - and if so when - the Chinese authorities will approve the EUR 245 million equity contribution of Pang Da and Youngman and whether the planned funding will be sufficient to structurally solve Saab Automobile's financial problems. The Court finds that it is unclear how Saab Automobile will be able to end the liquidity crisis and continue its business. The current stops in production are likely to have resulted in considerable loss of the goodwill of the company and an impairment of the Saab trademark.

Saab Automobile disagrees with this interpretation of the voluntary reorganization proposal and aims to submit its appeal on Monday September 12, 2011. After the court has received the appeal it is expected that a decision on the appeal is taken soon after.

In the meantime, Swan and Saab Automobile continue discussions with several parties about obtaining additional funding for the short term.

Swan will update the market on further developments.

[vztrt]

Court rejects Saab revival plan

http://www.goauto.com.au/mellor/mell...2579060015AB16

Saab to “throw kitchen sink” into appeal against court decision on reorganisation

9 September 2011

By RON HAMMERTON

SWEDISH car company Saab Automobile’s application for court-protected voluntary reorganisation under an administrator was rejected last night by a Swedish court on the grounds that its proposed rescue plan is insufficient to provide a good chance of survival.

Company chairman and CEO Victor Muller responded by saying it would “throw the kitchen sink” at an appeal against the decision, using “all the legal firepower available in this country”.

The appeal application is expected to take a week, exposing the fragile company to bankruptcy applications by aggrieved creditors, including unions representing unpaid workers.

The district court took just 29 hours to reject the application to appoint an administrator for an initial three months and grant the failing company protection from such bankruptcy actions under Swedish law.

Announcing Saab’s reaction to the court’s decision, a disappointed Mr Muller described the current situation as a nightmare, and that Saab would now advance to ‘plan C’ – the appeal.

He said the court clearly did not think the €245 million ($321m) in funding from backers – including Chinese companies Pang Da and Zhejiang Youngman – was insufficient to see Saab through its reorganisation.

“We will put more emphasis on that in the appeals application,” Mr Muller said.

Mr Muller said he doubted stakeholders would bring bankruptcy actions in the week it would take Saab to put together its appeal application, but even if they did, an appeal would be heard before any bankruptcy action.

“We appeal to all stakeholders to hold their horses until the appeal can be heard,” he said.

Asked what he would do if the appeal failed, Mr Muller said “go to plan D”, adding that he would fight for Saab until it was saved or bankrupt.

“I will go on until there is no other way,” he said.

Official Saab blogger Steven Wade – an Australian from Hobart who was in Saab’s Trollhattan headquarters when the news broke – told readers of his inside.saab.com website that workers seemed shellshocked by the decision.

“I’m sure the decision today flattened almost everyone at Saab,” he said. “Everyone I saw and spoke to in the half hour after the decision looked just as shell-shocked as I felt.

“That’s not just the level of belief we had in our submission, it’s the belief we have and the desire that we have to see this company succeed.”

Mr Muller, a lawyer, said he thought Saab had provided sufficient information to convince the district court to grant the application for voluntary administration, but “that clearly was not the case”.

He said the appeal application would be overloaded with information to ensure the court had everything it needed to view it in a positive light.

Asked what the appeal would be based on, he replied: “We have a week to think about it”, adding: “There are many grounds to have the decision overturned.”

Mr Muller said the company first had to apply to lodge and appeal, and then make the appeal, which he said would “take some time”.

Saab’s main car factory in Sweden has been idle since April, due to a lack of parts from suppliers waiting to be paid.

Saab had hoped voluntary reorganisation protection would allow the company to restart the assembly line, as suppliers would be required to deliver components as long as they were paid.

Saab also hoped to restart production of its new 9-4X SUV at General Motors’ plant in Mexico by paying GM outstanding funds, thereby generating cash-flow from sales in North America, where it has thousands of unfilled orders.

[vztrt]

http://www.autoblog.com/2011/09/12/s...ions-push-for/

Saab secures $96M bridge loan, lodges appeal as unions push for bankruptcy
By Jeremy Korzeniewski RSS feed
Sep 12th 2011 4:29PM

Saab fans: Go find yourself a hat, and hold the hell on to it – we have a feeling this ride is about to get a wee bit bumpier.

First, Saab has confirmed that Swedish unions Unionen and Ledarna have officially filed for bankruptcy of Saab Automobile. That's par for the course and anything but a surprise, as it seems the automaker owes just about everyone some money. These unions represent white-collar workers who have not been paid by Saab for the month of August.

Second, the automaker has, as had been planned, "lodged their appeal against the District Court's decision last week to reject Saab Automobile's proposal for voluntary reorganization." Basically, Saab's creditors are suing the company for various amounts owed, and these sums would be sufficient to bankrupt and close down the automaker. Saab asked for government protection from these creditors, which was subsequently denied. The automaker is appealing that decision.

Finally, Saab says it has secured a bridge loan worth $96 million from a heretofore unknown legal entity known as Specialty Purpose Vehicle. Zhejiang Youngman Lotus Automobile (which we'll mention again in the next paragraph) has signed an agreement with the aforementioned SPV to license certain technologies from the legal entity.

This $96 million bridge loan would supposedly be paid back by the $352 million deal that Saab had previously signed with Chinese partners Pang Da and Youngman – and yes, that's the same company that is apparently licensing technology from SPV under this latest agreement.

Is your head spinning yet? We don't blame you... and all of these deals are still awaiting approval from Chinese authorities, which is anything but guaranteed. Feel free to peruse the trio of press releases after the break for all the official details from Saab.

PRESS RELEASE

SAAB AUTOMOBILE SIGNS EUR 70 MILLION TECHNOLOGY LICENSE AGREEMENT

Zeewolde, The Netherlands, 12 September 2011 - Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) signed a technology license agreement with a special purpose vehicle named Swedish Automobile coöperatief U.A. (SPV). The license agreement relates to the non-exclusive rights in Saab Automobile's Phoenix architecture technology for a consideration of EUR 70 million.

As part of the transaction, Youngman has also signed a technology license transfer agreement with the SPV on purchasing the license and providing a guarantee for its payment of the license. This commitment of Youngman and the technology license agreement between Saab Automobile and the SPV are part of a bridge financing transaction. This bridge financing transaction and receipt of funds by Saab Automobile are still subject to finalization of definitive transaction documentation with the lender that will provide the bridge loan.

It is the intention to repay the bridge loan with the proceeds of the EUR 245 million equity investment of Pang Da and Youngman, which is still subject to approval of the relevant authorities.


SAAB AUTOMOBILE LODGES APPEAL AGAINST DISTRICT COURT RULING

Zeewolde, The Netherlands, 12 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) today lodged their appeal against the District Court's decision last week to reject Saab Automobile's proposal for voluntary reorganization. The appeal will be heard by the Court of Appeal in Gothenburg, Sweden.
Saab Automobile is of the opinion that by rejecting the voluntary reorganization proposal based on the reasons cited in the rejection statement, the District Court went considerably further in its consideration than what the legislator intended. Saab Automobile is of the opinion that the District Court has left out of consideration that the District Court's assignment is to avoid pure abuse of the Swedish Company Reorganization Act and approval of a reorganization request shall be based on the provision of a limited amount of documentation. Thus, Saab Automobile is of the opinion that in its ruling, the District Court has applied a much stricter standard of proof than is required under the Act.

The documentation for appeal contains, among other things, a number of improvements Saab Automobile has implemented since the last reorganization. This includes a patent application for Saab Automobile-developed extended range propulsion technology (EREV) that would considerably reduce fuel consumption in next-generation Saab vehicles, as well as the Saab Automobile-developed modular vehicle architecture.

In the meantime, Swan and Saab Automobile continue discussions with several parties about obtaining additional funding for the short term. Pang Da and Youngman continue working on obtaining approval from the National Development and Reform Commission (NDRC) for their equity investments worth EUR 245 million in Saab Automobile and have no reason to believe that the approval process will not be completed, nor that there will be unexpected delays. The approval process is expected to be finalized early November. Youngman and Pang Da intend after the initial equity contribution to contribute with additional capital.

The EUR 70 million commitment of Youngman and the technology license agreement between Saab Automobile and a special purpose vehicle, as communicated in the press release of this morning, are part of a bridge financing transaction. This bridge financing transaction and receipt of funds by Saab Automobile are still subject to finalization of definitive transaction documentation with the lender that will provide the bridge loan. Saab Automobile expects to finalize this process by September 26. Furthermore, international banks have shown interest in taking over Saab Automobile's existing loans in order to add further liquidity to the company.


SAAB AUTOMOBILE CONFIRMS BANKRUPTCY FILING BY SWEDISH UNIONS

Zeewolde, The Netherlands, 12 September 2011 - Swedish Automobile N.V. (Swan) and Saab Automobile AB (Saab Automobile) confirm that Swedish unions Unionen and Ledarna filed for bankruptcy of Saab Automobile. The court has received the filing, but has not yet rendered a judgment which could take a few weeks.

[vztrt]

http://www.caradvice.com.au/138021/s...-in-two-weeks/

Saab bankruptcy court hearing to take place in two weeks
By Brett Davis | September 14th, 2011

Saab is set to face a bankruptcy hearing later this month after two unions applied to a local court to put the Swedish automaker into bankruptcy. Saab owes a number of suppliers and employees money, but hasn’t been able to come up with the funds.

Last month Saab bank accounts were investigated to try and come up with funds to pay some of its workers. But after a given time frame to come up with the funds was not met by Saab, the unions had no choice but to ask courts to put the car maker into bankruptcy.

If bankruptcy takes place, it will activate a state wage insurance scheme to see the workers be paid. According to an Automotive News report, a representative of the unions has said that the bankruptcy process could take up to three weeks.

Meanwhile, Saab is still waiting on a 70 million euro investment from a Chinese deal. Apparently the only thing holding up the deal is approval by Chinese authorities.

Saab applied for bankruptcy protection based on this pending investment, but was rejected by the court after it saw no reason to believe a reorganisation would work for Saab. Saab appealed the court’s decision on Monday earlier this week.

The bankruptcy court hearing will take place on September 26.

[Chilliman]

Oh for the love of God can someone please put SAAB out of its misery!!!

You wouldn't let your dog suffer as much

[bobthebilda]

I still dont know why people think GM wouldn't do the same to Holden as they did to Saab.

GM tried to get rid of saab at the end of 2008, when they came of making 75,000 (i guess one could say high end cars).

Cars (2010) = 32,048

Cars (2009) = 20,950

Cars (2008) = 75,073

Cars (2007) = 102,915

Saab was GM's biggest presence in Northern europe (next best efforts were Astra sales). Cant think why Holden would be considered anymore of a sacred cow, with only 1% of Gm's worldwide production.

[Bossxr8]

The Chinese will probably keep delaying until SAAB is shutdown for good, then buy the remains cheap.

[vztrt]

http://www.autoblog.com/2011/09/19/s...zation-denial/

Swedish court grants Saab right to appeal reorganization denial
By Jeremy Korzeniewski RSS feed
Sep 19th 2011 3:15PM

Saab has been granted the right to appeal the District Court's decision last week to reject Saab Automobile's proposal for voluntary reorganization. This doesn't mean an appeal has been granted, only that Saab does indeed have the right to pursue an appeal in the case. According to the automaker, the Court of Appeals in Gothenburg, Sweden, is expected to issue a further ruling shortly. Hold on tight, Saabophiles, and feel free to read the short-but-official press release after the break.

PRESS RELEASE
COURT OF APPEAL GRANTS RIGHT TO APPEAL TO SAAB AUTOMOBILE IN VOLUNTARY REORGANIZATION CASE

Zeewolde, The Netherlands, 19 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 a right to appeal from the Court of Appeal in Gothenburg, Sweden today in their efforts to obtain approval for its proposal for voluntary reorganization.

Saab Automobile is pleased with the Court's decision and will now await further developments. The Court of Appeal is expected to rule shortly on Saab Automobile's appeal against the decision by the District Court in Vänersborg to reject Saab Automobile's proposal for voluntary reorganization.

- Ends -

News Source: Saab

[vztrt]

http://www.caradvice.com.au/138894/s...tion-approved/

Saab bankruptcy protection approved
By Brett Davis | September 22nd, 2011

Saab’s application for bankruptcy protection has been approved by the Court of Appeal in Gothenburg. This will give Saab more time to pay its workers, and its suppliers once investment funds finally come through.

A few of weeks ago, Saab applied for bankruptcy protection after two unions asked courts to put Saab into bankruptcy after the Swedish company failed to pay a number of its workers. Saab was given time to pay but the company couldn’t come up with the funds by the deadline.

Two weeks ago, courts rejected Saab’s application for bankruptcy protection saying that it didn’t believe a reorganisation would work for Saab. Saab was waiting on promised investments from Chinese companies Pang Da and Youngman at the time (and still is), which didn’t help the situation.

The purpose of the bankruptcy protection will give Saab more time to “secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions by Pang Da and Youngman”, according to a recent statement.

Saab is now waiting for approval of the 245-million-euro ($331 million) investment to finally be approved by Chinese authorities. Once that happens it can begin reorganisation.

[vztrt]

http://www.autoblog.com/2011/09/21/s...maker-to-reor/

Sweden approves protection for Saab after all, automaker to reorganize
By Chris Paukert RSS feed
Sep 21st 2011 9:27AM

Rabbit. Hat.

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.

PRESS RELEASE

SAAB AUTOMOBILE VOLUNTARY REORGANIZATION FILING APPROVED

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.

News Source: Saab

[vztrt]

Saab dodges bankruptcy bullet

http://www.goauto.com.au/mellor/mell...257914000FD1A1

Three months’ reprieve as court grants Saab’s appeal for bankruptcy protection

23 September 2011

By HAITHAM RAZAGUI

SAAB has won its appeal against a court decision made two weeks ago denying its bid to enter voluntary administration as a way of protecting it from creditors.

The ruling buys Saab at least three months to secure an essential €245 million ($321m) in funding from Chinese companies Pang Da and Zhejiang Youngman and gives it a chance to repay creditors and resume production.

A media release from the Trollhattan-based company explains that under Swedish law, an application to enter voluntary administration cannot be approved unless there is reasonable cause to assume the purpose of the reorganisation will be achieved.

“The Court of Appeal has found that such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg, Sweden,” it said.

According to a report in Swedish newspaper TTELA the Swedish company will now implement ‘operation cheetah’, a fast-track programme of cost reduction and efficiency measures with the aim of creating short-term stability.

A target of a 15 per cent cost reduction is said to require a 25 per cent decrease in fixed and variable costs for producing the cars. Saab personnel and project manager Johan Formgren told TTELA efficiency work had been in progress for a while but would now be accelerated.

Saab says it will “identify areas throughout the whole organization where efficiencies can be gained… by eliminating duplication of work, streamlining processes, shortening lead times, improving coordination between departments and simplifying the organizational structure.”

A further blow to employees who have faced months of uncertainty and delays in salary payments, the company admits cuts to the workforce “cannot be ruled out”.

The company will also try and get the bankruptcy filings from its workers’ trade unions withdrawn as the Swedish state will guarantee salary payments for at least three months during the reorganisation period.

Being unable to pay employees was described by Saab chairman and CEO Victor Muller as “a stone on my chest”.

Official Saab blogger Steven Wade, an Australian from Hobart, wrote of the strangeness of celebrating the company’s entering into administration, “a process that most companies would prefer to avoid”.

“However, it gives you an idea as to how beaten down Saab has been in the public’s mind (and in our own, to some extent) when I tell you that there were, indeed, some small celebrations here today after the court in Gothenburg.”

Although admitting a feeling of relief in an interview on Swedish television station TV4, Mr Muller said he thought there was “no cause for celebration here”.

“We wanted this two weeks ago, we got it today and it is a very important step in the process to getting the company back on its feet but it is just one small step.”

On the investment from China, Mr Muller remained positive. “I think it will go very well, I think it will go quickly. There is tremendous support from all sides, including the Swedish government, for this transaction.”

Saab now has three months to put its business plan – which hinges on the Chinese investment – into action. Although Saab could not meet the three month deadline when it was put out to pasture by former owner General Motors in 2009, Mr Muller believes it is a different situation this time around.

“This is a situation where the funding is earmarked to come from the Chinese and we are not asking the creditors to make any sacrifices – we will pay them in full and we are asking for this protection because we couldn’t pay all of them at the same time,” he said.

“I think it’s feasible… assuming that within that period of time the approvals will be obtained for the Chinese investment.

“If that happens, say within the next six weeks or so, that will be well within the three month period, but if it takes longer we will still be OK because we would apply for an extension.

“We get support from the ministry of enterprise, we get support from the ministry of foreign affairs so I do think that we will see this transaction happen quickly now and at least we can await the outcome of the process in China for approvals under the protection of the law.”

As GoAuto has reported, Saab’s main car factory in Sweden has been idle since April due to a lack of parts from suppliers who are waiting to be paid.

The sooner Saab production restarts the better, as it will then be able to generate cash-flow to keep the business stable.

It hopes to restart production of its new 9-4X SUV at General Motors’ plant in Mexico by paying GM outstanding funds, thereby generating sales in North America, where it has thousands of unfilled orders.

[RASER]

Originally Posted by Bossxr8

The Chinese will probably keep delaying until SAAB is shutdown for good, then buy the remains cheap.

+1

And buy it without any ongoing debt obligations