Saab could be declared bankrupt as soon as today with speculation building that the company may lose the bankruptcy protection it is currently operating under.
The process of voluntary reorganisation was won last month following a court appeal in Sweden (after being rejected at the first attempt). This US Chapter 11-style court process protects Saab from creditors while it forms a viability plan.
Saab receives lifeline from Swedish court
Since then, however, Saab has not received €70 million of vital funds as part of a bridge loan backed by Chinese firm Youngman.
Because of this, the administrator currently operating the voluntary reorganisation process may cancel the court protection order, reports a Swedish newspaper. As Saab is deep in debt to many of its suppliers, this could pave the way for the Swedish premium brand to be declared bankrupt.
Even if the voluntary reorganisation protection is not lifted, Saab’s future may be in doubt. Rumours are emerging that a vital deal that would see joint ventures formed with Chinese firms Youngman Lotus and Pang Da may not be granted by the Chinese government.
This deal, that includes a cash investment €245m in Saab, needs ratification by the Chinese government and an announcement has long been expected for mid-October. However, it now seems the Chinese government is unlikely to ratify this, because China feels it is not actually getting any new intellectual property.
Saab has already sold its existing platforms to another Chinese company, BAIC, while the current 9-5 is actually based on the GM Epsilon platform that yet another Chinese firm, SAIC, also builds cars upon.
MSN Cars will bring you more news on Saab’s future as we get it…
