Faced with growing financial setbacks, idling plants and the inability to meet payroll, Saab today sought protection from creditors in a Swedish district court, preparing for a voluntary reorganization instead of a full-on bankruptcy.
GM's former brand is following an eerily-similar path.
By definition, a voluntary reorganization is a fundamental, voluntary change in a financially-troubled firm's capital structure, affected by altering the voting rights of the providers of equity capital and/or loan capital, erasing debts and determining a more realistic value for the various assets by taking into account the current situation of said firm.
It's not a bankruptcy per se, but a last-resort process in which Saab, under government supervision, will get the necessary time, protection and stabilization of the business to secure short-term funding, including salary payments.
Saab will present a reorganization plan to creditors within three weeks. If approved by the court, the reorganization will be for three months, although the court may later extend this period to a maximum of twelve months.
CEO Victor Muller said in a press release that Pang Da and Youngman, the two Chinese investors committed to helping Saab get back on track and break through the Chinese market, both support the reorganization.
"While the voluntary reorganization process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process,"he said''. I would also like to express my deep gratitude to our employees, dealers, suppliers and all other stakeholders who have been so patient and understanding in the past trying months. I realize that we have severely tested their patience, but [...] I look forward to continuing these relationships and collectively start building a brighter future for Saab Automobile".
GM's former brand is following an eerily-similar path.
By definition, a voluntary reorganization is a fundamental, voluntary change in a financially-troubled firm's capital structure, affected by altering the voting rights of the providers of equity capital and/or loan capital, erasing debts and determining a more realistic value for the various assets by taking into account the current situation of said firm.
It's not a bankruptcy per se, but a last-resort process in which Saab, under government supervision, will get the necessary time, protection and stabilization of the business to secure short-term funding, including salary payments.
Saab will present a reorganization plan to creditors within three weeks. If approved by the court, the reorganization will be for three months, although the court may later extend this period to a maximum of twelve months.
CEO Victor Muller said in a press release that Pang Da and Youngman, the two Chinese investors committed to helping Saab get back on track and break through the Chinese market, both support the reorganization.
"While the voluntary reorganization process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process,"he said''. I would also like to express my deep gratitude to our employees, dealers, suppliers and all other stakeholders who have been so patient and understanding in the past trying months. I realize that we have severely tested their patience, but [...] I look forward to continuing these relationships and collectively start building a brighter future for Saab Automobile".