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Court rejects Saab bankruptcy protection
A Swedish court has today rejected Saab’s application for voluntary reorganisation, which means the business could risk being pushed into bankruptcy if creditors step up demands for payment.
Saab reportedly owes €150 million to its suppliers, who stopped delivering parts back in April because of the unpaid bills. Saab car production has been almost completely halted since then.
The application for voluntary reorganisation would have seen Saab protected from its creditors while the business was restructured. A court appointed administrator would have worked with Saab bosses to help make the business a sustainable going concern.
Saab applied for voluntary reorganisation on Wednesday, and proposed presenting its plans for reorganisation within three weeks.
The court has, however, rejected the initial application. Saab now intends to appeal the decision. Saab chairman and CEO has since said in a press conference he was ‘surprised and disappointed by the decision’.
Muller felt Saab had satisfied what he believed was the burden of proof to have an application for reorganisation approved.
Saab will now, he added, be ‘throwing the kitchen sink’ into the appeal.
MSN Cars will continue to follow the situation with the Swedish premium car maker, and bring you developments as they occur.
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