Press Release from SWAN:
COURT OF APPEAL GRANTS RIGHT OF APPEAL TO SAAB AUTOMOBILE IN VOLUNTARY REORGANIZATION CASE
Zeewolde, The Netherlands, 19 September 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) received a right to appeal from the Court of Appeal in Gothenburg, Sweden today in their efforts to obtain approval for its proposal for voluntary reorganization.
Saab Automobile is pleased with the Court’s decision and will now await further developments. The Court of Appeal is expected to rule shortly on Saab Automobile’s appeal against the decision by the District Court in Vänersborg to reject Saab Automobile’s proposal for voluntary reorganization.
And written prior to the press release…..
The court in Gothenburg has agreed to consider Saab’s appeal against the decision made last week in Vanersborg.
That’s the first “yes” we needed to hear.
Now, the case will be considered by a panel of judges, who will either rule in favour of Saab’s application for Reorganisation (the second ‘Yes’), or will rule against, which Saab could theoretically then appeal to the Supreme Court in Sweden.
This is a pretty big reorganisation application, said to be one of the biggest in Sweden and almost definitely the biggest taken to the appeal stage. Whilst the court has an obligation under the law to deal with the decision quickly, it’s possibly going to take a little time as they consider the precedent they’re setting. They do aim to have a decision prior to any scheduled bankruptcy hearing, the first of which is due on Sept 26. So bankruptcy filings at this point are little more than legal positioning and reason for a headline.
We still have confidence in them reaching a favourable reorganisation decision. Why? Because our business is still a good one with a lot going for it and that should be evident from the material supplied to the court.