Swedish court approved Saab reorganization with protection from creditors

The District Court dismissed the VANERSBORG two weeks ago, Saab’s request , citing uncertainties regarding Saab’s ability to raise the necessary funds . Swedish court yesterday accepted the request carmaker Saab for protection from creditors in order to give him more time to the Chinese investors provide the necessary funding .

The Court of Appeal for Western Sweden overturned a previous decision by a lower court on the grounds that “a thorough investigation may show that there are prerequisites for a successful reorganization .” Saab has financial problems since it was acquired by General Motors 2010th sold to a company based in the Netherlands , which is now called Swedish Automobile . Production at Saab’s plant was stopped several times during the year , as the company had difficulties in paying suppliers and employees.

Executive Director Victor Muller claims to be able to solve the problems in the company as soon as get cash injection from Chinese investors Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co . Chinese authorities have not yet approved the acquisitions of Chinese companies .

In yesterday’s decision, the court allowed the automaker headquartered in Trollhattan reorganize while protected from creditors, some of whom have already filed a petition for bankruptcy company Saab. In the process of reorganization, which will last three months but may be extended, the Swedish government will pay the salaries of employees at Saab.

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