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The Saab soap-opera continues, but this week the news is good. Saab just won a court appeal to protect it from creditors while it awaits funding from its Chinese investors.
Earlier this year, two Chinese companies, Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. agreed to buy shares in Saab, totaling $334-million.
Considering Saab currently owes $207-million to its employees and creditors, so once the money is received, it can easily pay down its debt.
The lower-court had initially rejected protection to Saab, citing that it had done so once before in 2009-2010.
How long will it actually be before Saab’s 3600 employees and its creditors will get paid? That is dependent on how quickly its Chinese investors can pay their due.
For now, the court has given Saab some breathing room. Saab’s production line has sadly been at a standstill since April 2011. Let’s hope they can once again start making beautiful and wonderful cars like the original 92 (pictured).
[Source: Automotive News]
It was just yesterday when we reported that Saab was seeking government protection against bankruptcy, but now it seems like this step has failed.
A Swedish court has rejected a protection and voluntary reorganization plan, citing that it does not believe any steps the automaker makes will help it to recover.
Saab is “disappointed” with the ruling and is filing an appeal to overturn this decision. If the appeal is rejected also, this would very well be the end for Saab as an auto manufacturer. This would certainly be a very sad end for what was once a thriving company credited for making cars like the 900 Turbo (pictured).
Another week and another sob story regarding Saab. The troubled automaker has just applied for protection from creditors, and is trying to avoid the bankruptcy petition made by the unions.
A once thriving manufacturer that made fighter aircraft, trucks and automobiles, the auto division of this 65 year-old company has been struggling ever since General Motors decided to liquidate its Swedish arm.
In 2009, Saab was bought out by Spyker Cars NV of Holland for $400-million. Since the take-over, Saab has struggled to keep the production line going and the much anticipated new 9-5 model has thus had trouble hitting the market place.
With creditors constantly breathing down Saab’s neck to get paid, Saab has filed for protection against creditors, so it can try to once again raise money and restart operations.
Saab CEO Victor Muller said in a statement; “A voluntary reorganization process will provide us with the necessary time, protection and stabilization.”
The plants in Trollhaettan have been quiet since June of this year. With suppliers losing confidence and workers waiting to get paid, it will take a miracle for Saab to get going again and to start making profit.