Zeewolde, The Netherlands, 8 September 2011
Swedish Automobile N.V. (Swan) announces that the District Court in Vänersborg, Sweden today rejected the proposal for voluntary reorganization by Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile). Saab Automobile is disappointed with the ruling and will appeal the District Court’s decision.
Swan will update the market tomorrow on further developments.
A press conference was just held here in Trollhattan where Chairman and CEO Victor Muller confirmed that Saab would be appealing the decision handed down today.
Victor Muller said that he was surprised and disappointed by the decision, that he thought Saab had satisfied what was believed to be the burden of proof to have a reorganisation application approved.
Obviously the court disagreed and now we will be ‘throwing the kitchen sink’ (i.e. absolutely everything) into the appeal documentation.
Video of the press conference below (h/t to SU for picking this up)
Further information, shared internally this afternoon but not sensitive, just confirmation of what’s been written above.
What happens next?
Saab has decided to appeal the district court’s decision.
The company believes that there is potential to continue successfully after a reorganization.
What happens now?
The company will analyse the district court’s decision with the help of legal counsel in preparation for an appeal.
Saab will supplement the original application with additional facts.
As the company now finds itself in a vulnerable situation, we have contacted the company’s stakeholders, including suppliers who have claims on Saab and the unions, in order to maintain a dialogue on the situation.
Tomorrow the company will give further information on the next steps in the process.