Zeewolde, The Netherlands – Struggling automaker Saab has filed for bankruptcy protection. The filing also affects Saab Automobile Powertrain AB and Saab Automobile Tools AB, but excludes Saab Automobile Parts AB and the company’s overseas subsidiaries, such as Saab Cars North America.
The company said that the proposed voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding. The reorganization will be a self-managed legal process under Swedish law, headed by an independent administrator appointed by the court who will work closely with the Saab Automobile management team.
As part of the process, Saab has formulated a reorganization plan, which includes a number of aspects aimed at lowering its cost base and creating a viable, competitive and independent organization. Following court approval, the reorganization will be executed over an initial period of three months, which can be extended by another three months to a maximum of twelve months.
The court-appointed administrator will apply for the Swedish state’s wage guarantee scheme, allowing all Saab employees to be paid their August wages.
Pang Da and Youngman, which earlier partnered with Saab, both support the voluntary reorganization, according to Saab CEO and chairman Victor Muller. The two Chinese companies placed orders for 11,000 cars and have agreements for conditional long-term funding.
Saab was forced to suspend production at its plant when suppliers stopped shipping parts due to non-payment and terms.