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"Saab Automobile AB Files For Voluntary Reorganization, Saab Automobile
Parts AB And Overseas Subsidiaries Excluded
September 7, 2011
Trollhättan, Sweden: 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.â€
“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.â€
“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.â€
Note to Editors:
Saab, or Svenska Aeroplan Aktiebolaget (Swedish Aircraft Company), was
founded in 1937 as an aircraft manufacturer and revealed its first prototype
passenger car 10 years later after the formation of the Saab Car Division.
In 1990, Saab Automobile AB was created as a separate company, jointly owned
by the Saab Scania Group and General Motors, and became a wholly-owned GM
subsidiary in 2000. In February 2010, Spyker Cars N.V. of the Netherlands,
acquired the company from GM as an independently-run business.
Saab cars reflect the brand’s unique Scandinavian design ethic, which is
fused with its aircraft engineering heritage. The company is a global
premium car maker with a distinguished history of innovation. It is
recognized for its pioneering role in turbocharging, as well as occupant
safety and the introduction of flex-fuel technology through Saab BioPower.
Saab Automobile AB currently employs approximately 3,700 staff in Sweden,
where it operates world-class production and technical development
facilities at its headquarters in Trollhättan, 70 km north of Gothenburg."
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