The Vanersborg district court in Sweden has rejected Saab’s plea to let it restructure itself and receive government protection against bankruptcy. The court felt that there was no reason why a second restructuring would fare any better for the automaker.
Saab has been scraping around for both cash and time – its suppliers have been calling for liquidation to get $210 million in overdue payments, and the Chinese government is slow in signing off on a proposed $359 million deal, which sells half of Saab’s shares to distributer Pang Da and automaker Youngman Lotus. If the deal goes through, it may be enough to slow the cash hemorrhage from Saab and allow it to get it back on track.
Saab said in a brief press release that it was “disappointed with the ruling” and that it will appeal the court’s decision. An appeal may be Saab’s only remaining option to remain afloat, unless another source of liquidity manages to suddenly appear.
Source: Saab, Automotive News (Subscription required)