Saab Gains Court Approval to Reorganize
In the first good news Saab has received in quite a while, Swedish Automobile N.V. revealed Wednesday it received approval for a reorganization that aims to secure short-term stability while the automaker searches for additional, consistent funding.
Swedish Automobile and Saab Automobile announced they received approval from the Court of Appeal in Gothenburg, Sweden for their proposal for voluntary reorganization.
The reorganization is an effort to ensure stability as well as attract additional funding, pending the inflow of the equity contributions by Chinese companies Pang Da and Youngman.
Highlighting the court ruling in more detail, officials noted the Swedish Company Reorganization Act states that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganization will be achieved.
Judging by Wednesday’s decision, the Court of Appeal has found that such conditions exist and overturned an earlier ruling by the District Court in Vanersborg, Sweden.
As a result of the recent ruling, Saab will now request for the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.
Back when the application for reorganization was first brought to District Court in early September, Saab said the reorganization will allow the company to do things like pay employee salaries and prepare for production to be ramped back up.
For more information regarding the reorganization, see Auto Remarketing’s story here.