Saab Granted Restructuring
On Friday morning the Swedish based car giant Saab sought legal restructuring to avoid bankruptcy after being abandoned by its American owner General Motors. The plan is to reorganise the brand and create an independent company.
At twenty to nine on Friday morning the documents were delivered to the district court in Vänersborg, in the southwest of Sweden. Just before 1 PM , the court announced that the request for restructuring will be granted.
A restructuring would mean that parts of Saab would have a chance to survive and that the subcontractors could get some of the monies owed back instead of losing everything if the company filed for bankruptcy. However, while the restructuring is going on, the subcontractors can’t claim their money, and will have to wait for payment until the process is completed, according to news agency TT.
A press release, issued by General Motors on Friday morningsaid that the planned reorganisation of the company would be achieved over a period of 3 months, and will need financial subsidies in order to succeed. Saab will continue business as usual during the process.
Minister for Enterprise and Energy, Maud Olofsson, said to TT on Friday morning that the move by Saab was expected, as General Motors isn’t providing enough support. The minister wanted to be briefed more in depth on the situation before making any statements regarding the government’s future role in the restructuring of Saab. The Swedish government rejected General Motors’ plea for financial help earlier this week.
Saab’s restructuring will be overseen by three people; Guy Lofalk, a lawyer selected by the district court, Saab CEO Jan Åke Jonsson and international restructuring expert Stephen Taylor, according to a press release issued by Saab on Friday afternoon.