Swedish Automobile NV, the owner of the 64-year-old Saab car brand, said Friday it aims to submit on Monday an appeal against a court ruling that rejected Saab’s proposal for bankruptcy protection.
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) aim to submit their appeal on the District Court’s decision to reject Saab Automobile’s proposal for voluntary reorganization on Monday September 12, 2011.
A western Swedish district court on Thursday denied the carmaker its request for protection from creditors while it secures Chinese invesment and bridge funding. But it gave Saab, owned by Dutch group Swedish Automobile (Swan) , until Sept. 29 to appeal against the decision.
The appeal process should take a week, said Victor Muller, Saab’s chairman and the chief executive of Saab owner, Netherlands-based Swedish Automobile NV.
Muller said Saab would provide more information on a submission for Chinese Authorities to approve investment in Saab by two Chinese companies, on when that money would be available and on whether the investment would be sufficient to get the company back on its feet.
The company has struggled to pay suppliers and staff, and production at its manufacturing plant in Trollhattan, Sweden, has been suspended for most of the year.
Bankruptcy protection in Sweden is similar to Chapter 11 in the U.S., allowing a company to reorganize, buying it time to improve its finances and stave off liquidation.