On Wednesday, Saab won a court appeal to be granted protection from its creditors as the automaker awaits investments from its Chinese investors, including Pang Da and Zhejiang Youngman Lotus Automobile.
The company, which says it has about 150 million euros in outstanding debt, has said it expects that cash influx in November.
Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) has launched an efficiency improvement initiative as part of a broader review of the company’s business plan for 2012 and beyond, aiming at creating a more flexible and more competitive cost structure for the company.
This initiative also reflects the effects of the prolonged production stoppage since April of this year and is an important element of the voluntary reorganization plan that will be presented at a forthcoming creditors meeting.
Highlighting the court ruling in more detail, officials noted the Swedish Company Reorganization Act states that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganization will be achieved.
Saab, which General Motors Co. sold last year, first halted production in late March after suppliers stopped delivering parts because they hadn’t been paid. Assembly at the main factory in Trollhaettan has been quiet since early June.
Shares in Swedish Automobile, soared 30 percent on Wednesday after a court gave Saab protection from creditors while it restructures, prompting the company to announce a cost-cutting plan.