Saab keeps court protection
Source: Agencies |
November 9, 2011, Wednesday
|
Print Edition
Print Edition
CARMAKER Saab will for now still enjoy legal protection from creditors, the court-appointed lawyer overseeing a reconstruction process for the company said yesterday after General Motors rejected a Chinese bid for the company.
GM said on Monday that it would stop supplying components and technology to Saab if two Chinese companies succeeded with their acquisition bid - a hardening in its opposition to the proposed sale of Saab which called into question the survival of the niche brand, which has been under court protection from creditors since September.
"We will now try to get clarity about what the decision from GM means and if there is any way ahead," court-appointed administrator Guy Lofalk said.
It will be Lofalk's decision to apply to the court to end the bankruptcy protection process. He said that could happen, but declined to say under what circumstances.
The reconstruction involves Lofalk plotting a future for the company in talks with its creditors, mainly suppliers who are owed about 150 million euros (US$207 million). He has to make sure the company has a viable future and the Chinese bid was key to that.
He said talks were taking place between Saab owner Swedish Automobile and Chinese investors, Pang Da Automobile Trade Co and Zhejiang Youngman Lotus Automobile.
"You have to take each day as it comes, no process is served by having too many alternative results ... we are carrying out a reconstruction and a bump comes along on the road, that happens all the time," Lofalk said.
"I hope that I will know more before the end of the week," he added.
Victor Muller, chief executive of Saab's embattled owner, on Monday said GM's rejection meant negotiators would have to go back to the drawing board with the Chinese.
A deal for the Chinese firms to rescue Saab had been awaiting approval from Chinese government officials.
The Swedish government, a Saab creditor, also had yet to approve the deal.
Muller said he expected to speak to the Chinese companies to consider the remaining possibilities for Saab after GM's announcement.
The proposed rescue deal for Saab has to be approved by GM since it still has preference shares in Saab and has supplied the Swedish auto brand with crucial components.
GM said on Monday that it would stop supplying components and technology to Saab if two Chinese companies succeeded with their acquisition bid - a hardening in its opposition to the proposed sale of Saab which called into question the survival of the niche brand, which has been under court protection from creditors since September.
"We will now try to get clarity about what the decision from GM means and if there is any way ahead," court-appointed administrator Guy Lofalk said.
It will be Lofalk's decision to apply to the court to end the bankruptcy protection process. He said that could happen, but declined to say under what circumstances.
The reconstruction involves Lofalk plotting a future for the company in talks with its creditors, mainly suppliers who are owed about 150 million euros (US$207 million). He has to make sure the company has a viable future and the Chinese bid was key to that.
He said talks were taking place between Saab owner Swedish Automobile and Chinese investors, Pang Da Automobile Trade Co and Zhejiang Youngman Lotus Automobile.
"You have to take each day as it comes, no process is served by having too many alternative results ... we are carrying out a reconstruction and a bump comes along on the road, that happens all the time," Lofalk said.
"I hope that I will know more before the end of the week," he added.
Victor Muller, chief executive of Saab's embattled owner, on Monday said GM's rejection meant negotiators would have to go back to the drawing board with the Chinese.
A deal for the Chinese firms to rescue Saab had been awaiting approval from Chinese government officials.
The Swedish government, a Saab creditor, also had yet to approve the deal.
Muller said he expected to speak to the Chinese companies to consider the remaining possibilities for Saab after GM's announcement.
The proposed rescue deal for Saab has to be approved by GM since it still has preference shares in Saab and has supplied the Swedish auto brand with crucial components.
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