Are these the last days for Saab ?
After many decades of providing high quality automobiles as well as other products the once renowned and well respected Saab auto group is on the ropes. The Swedish carmaker well known for building some of the most dependable and elegant cars in the past 60 years has come upon some hard times. Saab has not been able to produce a car in months due to the ongoing crisis the company has found themselves in these past years.
Saab who owes hundreds of millions of crowns to both its workers and their suppliers is desperately trying to stay alive. In September the beleaguered and cash poor manufacture was given a moment of rest from creditors, due to a court ordered protection. This is the second time this has happened in the past two years.There was earlier hope that the two Chinese auto groups Zhejiang Youngman Lotus Automobile Co. and Pangda Automobile Trade Co. would buy the automaker and help restore her back to her global leading position .Unfortunately for Saab and her workers ,clashes between Swedish Automobile ,Saabs’ owner and the Chinese group has severely hindered any chance of a deal going through. Saab is at this time rejecting Zhejiang Youngman Lotus Automobile Co. and Panda Automobile Trade Co. offer for total buyout. Saab does not wish to follow through with those plans, but would like to still keep some portion of control of their company.These developments have caused Guy Lofalk, the court appointed administrator who is responsible for turning Saab around, to petition the Swedish courts to stop any plans for restructuring the company.
Saab and her leadership do not agree with Lofalk and his desire to end the process. Currently they are asking the court to not follow Lofalks plan. Reports have stated that a decision is expected to come by October 28th. At that time we will know whether the court agrees to end restructuring or if the court would like to continue to try to save the beloved company. If the court does agree to end restructuring at that point Saab will most likely finally be declared bankrupt.
Saab and her leadership do not agree with Lofalk and his desire to end the process. Currently they are asking the court to not follow Lofalks plan. Reports have stated that a decision is expected to come by October 28th. At that time we will know whether the court agrees to end restructuring or if the court would like to continue to try to save the beloved company. If the court does agree to end restructuring at that point Saab will most likely finally be declared bankrupt.