Saab Files for Court Protection While It Awaits Chinese Cash
By DAVID JOLLY
Published: September 7, 2011
PARIS — Saab Automobile, the Swedish carmaker, sought protection from creditors on Wednesday to buy time until planned investments from Chinese companies materialize and heading off a legal challenge from unions that could have forced the break-up of the company.
Saab Automobile and two subsidiaries, Saab Automobile Powertrain and Saab Automobile Tools, filed for “voluntary reorganization” with the District Court in Vanersborg, Sweden, according to a statement from Saab’s parent company, Swedish Automobile, which is based in Zeewolde, the Netherlands. Overseas units are not affected by the filing.
The companies “are of the opinion that, considering Saab Automobile’s current limited financial resources, a voluntary reorganization will entail the best preconditions for using existing resources in the most efficient way,” the statement said.
Swedish Automobile, formerly known as Spyker Cars, bought Saab from General Motors in 2010 with plans to turn the company around. But Saab, whose cars had a relatively small but enthusiastic following, has struggled simply to stay afloat, missing payrolls and shutting down production in June because suppliers refused to provide credit.
Saab's employees are growing increasingly anxious. They have not been paid for August, and were paid late for both June and July. Unions have been considering a legal challenge that could have led the company into bankruptcy.
Saab signed what it called “binding agreements” with two Chinese partners this year, but said it has not yet received any of the promised investments.
Zhejiang Youngman Lotus Automobile agreed in June to pay €136 million, or $191 million, for a 29.9 percent stake in Swedish Automobile. Pang Da Automobile Trade said in May that it would pay €109 million for 24 percent of Swedish Automobile.
Saab said Wednesdsay that the Chinese deals remained “subject to obtaining certain approvals.” Saab did not specify the cause of the delay, but Chinese companies investing abroad must first obtain the approval of China’s National Development and Reform Commission, something that has not yet been forthcoming.
“The eventual purpose of the proposed voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions of Pang Da and Youngman,” the statement said.
Both Chinese companies support the move, Victor Muller, chief executive of both Saab and the parent company, said in the statement.
“We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared,” Mr. Muller said.
Unlike a bankruptcy meant to shed debt, the bridge funding is necessary to restore production, pay employees and regain the confidence of the market until the long-term investment arrives. A spokeswoman for the company, Gunilla Gustavs, declined to comment on the amount of bridge financing required.
Trading in Swedish Automobile shares, which have fallen almost 80 percent this year, was suspended Wednesday on the Amsterdam exchange.
A planned investment by a Russian financier, Vladimir A. Antonov, failed to obtain the approval of the Swedish authorities, though Mr. Antonov has said he remains interested in the company. Saab was able to raise funds with a sale and lease-back of some property holdings.
_________________ Sai che cosa diceva quel tale? In Italia sotto i Borgia, per trent'anni, hanno avuto assassinii, guerre, terrore e massacri, ma hanno prodotto Michelangelo, Leonardo da Vinci e il Rinascimento. In Svizzera hanno avuto amore fraterno, cinquecento anni di pace e democrazia, e che cos' hanno prodotto? Gli orologi a cucù.( O.Welles)
|