Saab Automobile announces risk of delayed payment of wages

JLA skrev 2011-08-24 19:20:

And there has been no salaries paid so far. The employee unions are now
aiming at declaring Saab to become bancrupt (which to my opinion should
have been done a long time ago)

The Saab owners are now being suspected to have violated Swedish law by
trying to run an enterprise despite being in deep debt.

--
th

 > JLA wrote:
 > From Saab
 >
 > SAAB AUTOMOBILE INFORMS EMPLOYEES ON SALARY PAYMENTS
 >
 > Zeewolde, The Netherlands, 23 August 2011 - Swedish Automobile N.V.
(Swan) and Saab Automobile AB (Saab Automobile) announce that there is
a risk of delayed payment of August wages to Saab Automobile employees
as some of the funds that were committed by investors may not be paid
in time to effect such salary payments.
 >
 > Saab Automobile is taking all necessary actions to collect these
funds in time and continues discussions with various parties to
obtain additional short-term funding so that the payments can be
made, as well as resume sustainable production. There can however be
no assurance that the necessary funding will be obtained or the funds
collected.

More info from AB

To say that Saab has had a rough 2011 would be one heck of an
understatement. Sales are trickling slowly, the automaker's
Trollhattan plant hasn't consistently produced vehicles since late
April because suppliers weren't getting paid, and a failed alliance
is making the Swedish automaker look like it has cooties.

Now it appears as though Saab is taking legal steps to keep the
company going, as Reuters is citing a public radio report that claims
the automaker will soon apply for court protection from creditors. If
the courts grant temporary creditor protection, Saab will begin a
process of corporate restructuring at the hands of an administrator
and company management.

Though Saab has yet to officially confirm its intention to enter
creditor protection, the move would seem to make sense given the
automaker's string of disappointments and dire finances. The
automaker announced earlier this week that it would delay its
second-quarter report until August 31, perhaps to buy time until Saab
officially engages the courts. That news followed Saab's announcement
that August salary payments to employees may be late.

So what would creditor protection do for Saab? The move would likely
buy the automaker additional time to drum up more alliances and raise
more cash. If Saab still can't secure additional money or find new
partners (there has been some success on this front), it appears all
but inevitable that the company will dissolve.

 > JLA wrote:
 > From Saab
 >
 > SAAB AUTOMOBILE INFORMS EMPLOYEES ON SALARY PAYMENTS
 >
 > Zeewolde, The Netherlands, 23 August 2011 - Swedish Automobile N.V.
(Swan) and Saab Automobile AB (Saab Automobile) announce that there is
a risk of delayed payment of August wages to Saab Automobile employees
as some of the funds that were committed by investors may not be paid
in time to effect such salary payments.
 >
 > Saab Automobile is taking all necessary actions to collect these
funds in time and continues discussions with various parties to
obtain additional short-term funding so that the payments can be
made, as well as resume sustainable production. There can however be
no assurance that the necessary funding will be obtained or the funds
collected.

Another update from SAAB

SAAB AUTOMOBILE AB FILES FOR VOLUNTARY REORGANIZATION, SAAB AUTOMOBILE
PARTS AB AND OVERSEAS SUBSIDIARIES ARE EXCLUDED

Zeewolde, The Netherlands, 7 September 2011 - 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) will file for voluntary reorganization today at
09:00 CET with the District Court in Vänersborg, Sweden. Swan and
Saab Automobile 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 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 proposed voluntary reorganization will be a self-managed, legal
process under Swedish law headed by an independent administrator
appointed by the court who will work closely with the Saab Automobile
management team. As part of the process, Saab Automobile has
formulated a reorganization plan, which includes a number of aspects
aimed at lowering its cost-base and creating a viable, competitive
and independent organization. This reorganization plan will be
presented to creditors in more detail within three weeks of the
filing, although this period could be extended by the court.

Following court approval, the voluntary reorganization will be
executed over an initial period of three months. If required, the
reorganization period can be extended by another three months, up to
a maximum of twelve months. Swan and Saab Automobile are confident
that they will secure additional short-term funding for the
reorganization period and are currently in negotiations with several
parties about obtaining such funding. Funding for Saab Automobile to
exit reorganization has been secured through binding agreements with
Pang Da and Youngman as announced on July 4, which agreements are,
however, subject to obtaining certain approvals.

As part of the reorganization filing, the court-appointed
administrator will apply for the Swedish state's wage guarantee
scheme to allow wage payments to all Saab Automobile employees to be
made. August salaries are expected to be paid within a short time
frame following the court approval. With regards to outstanding debts
to creditors, Saab Automobile will seek the support of its creditors
for the reorganization process and is confident it will obtain this
support, particularly because Saab Automobile aims at full redemption
of outstanding debts.

Saab Automobile has proposed that the District Court appoints Swedish
lawyer Guy Lofalk as administrator, who also was the administrator in
the successful 2009 Saab Automobile reorganization. Victor Muller, CEO
of Swan and CEO and Chairman of Saab Automobile, and the Saab
Automobile management team will cooperate closely with the
administrator to execute the reorganization plan. The voluntary
reorganization process will cover Saab Automobile AB, Saab Automobile
Powertrain AB and Saab Tools AB. All other entities, including Saab
Parts AB and all overseas entities such as Saab Great Britain and
Saab Cars North America, are excluded from the reorganization.

The reorganization plan contains a blueprint of how Saab Automobile's
Management expects to improve Saab Automobile's business model with
an emphasis on an independent, lean and competitive organization.
Many key elements of Saab Automobile's original business plan remain,
as Management believes the objectives of the overall strategy remain
intact. Through the roll-out of a fully rejuvenated product
portfolio, partnerships with Chinese firms Pang Da and Youngman that
will ensure access to the world's largest and fastest growing market,
and a strong and global brand, Saab Automobile is well-positioned to
realize its objective of becoming a viable independent premium car
manufacturer.

Victor Muller, CEO of Swan and CEO and Chairman of Saab Automobile,
said:

"Since securing the long-term funding through conditional
agreements with Pang Da and Youngman, who both support this voluntary
reorganization, we have focused on securing funding to bridge the
period until we receive their funds. 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."

"While the voluntary reorganization process will no doubt present
us with a number of tough issues and decisions, I believe that Saab
Automobile will emerge stronger from this process. The potential for
Saab Automobile as a viable, independent premium car manufacturer is
there, as shown by the rejuvenation of our product portfolio,
approximately 11,000 orders and the conditional long-term funding
already in place through the binding agreements with Pang Da and
Youngman that will give us access to the Chinese market."

"I would also like to express my deep gratitude to our employees,
dealers, suppliers and all other stakeholders who have been so patient
and understanding in the past trying months. I realize that we have
severely tested their patience, but it has been heartening to see
that in general, our employees, dealers, suppliers and other
stakeholders have stood by us through this tough period. I look
forward to continuing these relationships and collectively start
building a brighter future for Saab Automobile."

JLA skrev 2011-09-07 18:52:

and the court ruled against the appeal for reorganisation. The main
objection was that with about 1 billon Euro debt and no firm committment
  of future funding the appeal is not credible. Thus bancrupcy is very
likely.

--
th

 > JLA wrote:
 > From Saab
 >
 > SAAB AUTOMOBILE INFORMS EMPLOYEES ON SALARY PAYMENTS
 >
 > Zeewolde, The Netherlands, 23 August 2011 - Swedish Automobile N.V.
(Swan) and Saab Automobile AB (Saab Automobile) announce that there is
a risk of delayed payment of August wages to Saab Automobile employees
as some of the funds that were committed by investors may not be paid
in time to effect such salary payments.
 >
 > Saab Automobile is taking all necessary actions to collect these
funds in time and continues discussions with various parties to
obtain additional short-term funding so that the payments can be
made, as well as resume sustainable production. There can however be
no assurance that the necessary funding will be obtained or the funds
collected.

Another update

SAAB AUTOMOBILE UPDATE ON VOLUNTARY REORGANIZATION

Zeewolde, The Netherlands, 9 September 2011 - 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.

In yesterday's decision, the District Court argued that the
application of Saab Automobile lacks evidence that the purpose of a
formal reorganization can be fulfilled. The Court is of the opinion
that the first reorganization of Saab Automobile cannot be considered
to be a successful one. It is further unclear to the Court whether -
and if so when - the Chinese authorities will approve the EUR 245
million equity contribution of Pang Da and Youngman and whether the
planned funding will be sufficient to structurally solve Saab
Automobile's financial problems. The Court finds that it is unclear
how Saab Automobile will be able to end the liquidity crisis and
continue its business. The current stops in production are likely to
have resulted in considerable loss of the goodwill of the company and
an impairment of the Saab trademark.

Saab Automobile disagrees with this interpretation of the voluntary
reorganization proposal and aims to submit its appeal on Monday
September 12, 2011. After the court has received the appeal it is
expected that a decision on the appeal is taken soon after.

In the meantime, Swan and Saab Automobile continue discussions with
several parties about obtaining additional funding for the short
term.

Swan will update the market on further developments.