More than 40 U.S. Saab dealerships filed an involuntary bankruptcy petition to push Saab (SAABB) Cars North America Inc. into bankruptcy in U.S.
The petition was filed in U.S. Bankruptcy Court in Wilmington, Del.
They claim that the company owes them more than $1.2 million as incentive reimbursements and unpaid warranties. In this situation the company has 20 days to respond to this petition and to contest the bankruptcy or have the case converted to reorganization.
After parent company Saab Automobile AB filed for bankruptcy in Sweden last month, Saab Cars North America hired an outside administrator who, over the next 30 days, will supervise the company and give advice on what is to be done next.
The company seeks an out-of-court solution trying to reestablish business with the Sweden parts supplier (a separate company that is not in bankruptcy).
As North America provides Saab with more than 35 percent of its global sales, the company still hopes to get back on its feet. Even if they manage to recover, the problems won’t simply disappear.
The customer will be reluctant about buying a car from a company that went into bankruptcy. Whatever decision is to be made, it will soon be made public.