Saab Denied Court Protection

[William Maley]

Saab Denied Court Protection

William Maley - Editor/Reporter - CheersandGears.com

September 8, 2011

Saab is running out of lives. Yesterday, the company filed a request in Swedish Court asking for protection, citing if approved, the company would undergo a voluntary reorganization. Today, a Swedish court has denied Saab's application.

In a statement released by the Vanersborg district court in west Sweden, they believe the reorganization process wouldn't work for Saab.

Saab say they're appealing the ruling.

"Saab Automobile is disappointed with the ruling and will appeal the District Court's decision," the company said today.

This leaves Saab in a precarious position. If the company's appeal fails or is not filed in time, the union could force the company into bankruptcy.

"We will now thoroughly analyze the new situation. If the company doesn't find another solution or files a bankruptcy request themselves, we may be forced to do that in the next few days," said Stefan Lofven, head of IF Metall in a statement.

Source: Automotive News (Subscription Required)

[SoCalCTS]

I like the idea of Saab as an employee owned company. Maybe the union can do a better job with company than Spyker. Or maybe the Swedish government can take it over like the US did with GM.

[Camino LS6]

Seriously?

You like that idea?

[Robert Hall]

Seriously?

You like that idea?

Why not? What they are doing currently isn't working...time to try something different.

[Camino LS6]

Employee/union ownership would be a joke.

[Robert Hall]

Employee/union ownership would be a joke.

Why?

[riviera74]

I hate to say this, but the creditors should take over SAAB and make it profitable. If they refuse, they can sell it off piece by piece. I do not miss Saab at all. My mom had an OK 1994 Saab 9000 CSE and then it had a weird engine problem in 1997. The car was sent back to Sweden never to return. Good riddance to that pile.

[Camino LS6]

Employee/union ownership would be a joke.

Why?

Nothing telegraphs "lost cause" like such a takeover.

Has that ever worked, anywhere?

Saab's toast.

[Cremazie]

Saab is done..

Thank god its not still a part of GM!

[FAPTurbo]

Employee/union ownership would be a joke.

Why?

Nothing telegraphs "lost cause" like such a takeover.

Has that ever worked, anywhere?

Saab's toast.

Actually it has, though in different industries; ones which are far less complicated than an automaker. I doubt even dedicated employees would be able to weather the supply-management/advertising/investment shoring needs of SAAB for long.

[Camino LS6]

If I remember correctly, an airline went this route but later returned to being a public company.

The only hope for Saab is a buyer with deep pockets, a sense of commitment, and great patience.

[RjION]

If I remember correctly, an airline went this route but later returned to being a public company.

The only hope for Saab is a buyer with deep pockets, a sense of commitment, and great patience.

Deep Deep pockets and lots of time.

[ZL-1]

The only hope for Saab is a buyer with deep pockets, a sense of commitment, and great patience.

SAAB had its chance, and Victor muller blew that chance. Time to fold, IMHO.

[A Horse With No Name]

Time to fold indeed...