Saab files for bankruptcy protection

[ice cold]

STOCKHOLM (AP) — Automaker Saab filed for bankruptcy protection Friday and has applied to be spun off from its parent company General Motors, officials said.

An application to reorganize the Swedish-based unit was filed at a district court in Vanersborg, in southwestern Sweden, Saab spokeswoman Margareta Hogstrom said.

The move comes after the Swedish government rejected a request from loss-making GM to inject money into the carmaker. GM has been looking for buyers for Saab but said it needs more funding to put the brand up for sale.

"We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal restructuring would be the best way to create a truly independent entity that is ready for investment," Saab's managing director, Jan Ake Jonsson, said in a statement.

The process is similar to a Chapter 11 bankruptcy in the U.S.

http://www.google.com/hostednews/ap/...YxofQD96F7ESG0

[Carver]

I wish the Swedish government would just nationalize it, run it for a few years, shepherd the company through the recession, and then re-privatize it.

[Sinner]

I wish the Swedish government would just nationalize it, run it for a few years, shepherd the company through the recession, and then re-privatize it.

That would be the most common sense thing to do.

[likearock00]

Damn....well, probably for the best.

[Perian]

When I pulled into work this morning in my wonderful Saab 9-5, a co-worker shouted...Is that the new Saab 1-1?

It's going to be a great day.


Long live Saab.

[Titanic]

Not a good sign for the rest of GM.

We need better emoticons to get us through this trying time period. I can't find any that are appropriate.

[vwgtivw]

This works for me.

[Perian]

Saab On The Road to Independence

# Swedish court process to reorganize Saab into a fully independent business
# Three new models ready to be launched over the next year and a half
# Saab aims to bring resources back to Sweden
# Funding sought for ‘new independent Saab’


Trollhättan. As a result of GM’s strategic review of the global Saab business the Saab Board announced today that it will file for reorganization under a self-managed Swedish court process to create a fully independent business entity that would be sustainable and suitable for investment.

The reorganization is a self-managed, Swedish legal process headed by an independent administrator appointed by the court who will work closely with the Saab management team. As part of the process, Saab will formulate its proposal for reorganization, which will include the concentration of design, engineering and manufacturing in Sweden. This proposal will be presented to creditors within three weeks of the filing. Pending court approval, the reorganization will be executed over a three-month period and will require independent funding to succeed.

“We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment,” said Jan Ake Jonsson, Managing Director for Saab Automobile. “With an all new 9-5, 9-3X and 9-4X all ready for launch over the next year and a half, Saab has an excellent foundation for strong growth, assuming we can get the funding to complete engineering, tooling and manage launch costs. Reorganization will give us the time and means that help get these products to market while minimizing the liquidity impact of Saab on GM.”

Funding for the restructured company will need to be secured during the reorganization process and will be sought from both public and private sources.

Saab will continue to operate as usual and in accordance with the formal reorganization process, with the Government providing some support during this period. The reorganization should have no impact on other GM operations. Details of the progress will be provided as milestones are achieved.


Source: General Motors Corporation

[drew630]

Ok, I asked this in another thread but no one responded:

Ok, question, I have a friend who bought a new Saab back in December. Would GM still cover the warranty when Saab becomes independent or would Saab be taking that over?

Does anyone know? If we don't know yet which way do you think it will go?

[1931Chevy]

what the heck. can this be done, you have a wholly owned subsidiary and they can go to bankruptcy behinf your back and then ask to ebe spun off after they sucked some money out of you pr its GM testing how a bankruptcy of them would look like

[jkennedy293]

Total brands down to 7.

[drew630]

Total brands down to 7.

We are getting there. Slowly but surely.

Saturn is next.

[desmo9]

if it's part of GM, how does Saab file for bankruptcy protection prior to GM spinning it off? Must be some scandinavian law.

it's like the Big Mac filing for bankruptcy protection.

[Andonis]

^or 6?

[Bokl]

What happen with gm management saying that saab is profitable. You can not belaive anything these people say anymore. We need new management.