Zeewolde, The Netherlands – Saab has confirmed that its workers’ unions have filed for bankruptcy of Saab Automobile. The court has received the filing by Swedish unions Unionen and Ledarna, but has not yet rendered a judgement, which could take a few weeks.
Saab, its parent company Swedish Automobile N.V. and two of its subsidiaries have also lodged an appeal against last week’s decision by the District Court to reject Saab’s proposal for voluntary reorganization.
In a release, Saab said that it 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 the appeal contains, among other things, a number of improvements Saab has implemented since its last reorganization, including a patent application for a Saab-developed extended-range propulsion technology that would reduce fuel consumption in next-generation Saab vehicles, as well as the company’s modular vehicle architecture.
Saab said it is continuing discussions with several parties to obtain additional short-term funding, and its Chinese partners Pang Da and Youngman will continue working on obtaining approval for their equity investments, worth €245 million. The approval process is expected to be finalized in early November.