Hearing for Saab bankruptcy scheduled before the end of the month

Posted: September 15th, 2011 | Author: | Filed under: Saab | Tags: , , , | No Comments »

Struggling car manufacturer Saab’s hearing for its bankruptcy is scheduled on 26 September according to a district court in Sweden. Saab will be appearing in a lower court in Vanersborg, a town in the southern portion of Sweden.

Saab has to deal with two white collar worker unions complaining about unpaid salaries for the month of June thru July. They are also not compensated yet for the month August. . The unions served applications for bankruptcy last week to push for the activation of an insurance scheme by the state to handle the wage problems.

One spokesperson of the worker unions shared information that the process might take 3 to 5 weeks.

Saab, on the other hand, announced money-raising activities spearheaded by the company’s CEO Victor Muller. The car producer arranged for around $96 in bridge loan with the aid of a Chinese guarantor. The bridge financing gives Saab some more time as they take legal steps to protect the company from creditors. It has sought for the court’s protection for the second time as it tries to restructure.

One of Sweden’s lower court rejected the case of Saab but the car manufacturer filed for an appeal so the case can be reconsidered.

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