Saab begin ‘Composition’ proceedings

This came in from Saab Sweden overnight.
“Composition” – as I understand it – is the part of the proceeding where Saab formally lay out who’s going to get what and when (in financial terms) as part of their reconstruction. It’s probably more complex than that, but you get the drift.
Hi Steven,
FYI Saab has just submitted an application to start Composition proceedings.
The overriding message is that: Everything is going to plan.
Application to start Composition proceedings (made 20 May 2009)

  • A formal application for Vänersborg District Court to start Composition proceedings took place on the afternoon of 20 May 2009
  • We publicly laid out our intention to do this on 6 Apr (at the creditors meeting)
  • Aim is to reduce un-prioritized debt relating to those remaining creditor’s claims made prior to Saab filing for reorganization
  • We have been in communication with those creditors affected – they were written to about the Composition proposal on 11 May
  • Out of 600 creditors, even at this early stage, the majority have already approved the Composition proposal
  • It is likely that the Composition hearing will be in mid Jun

I am sure there will be reports in the Swedish media – the one inaccuracy that has already been reported is that the Govt Tax Authority has rejected the proposal: THIS IS NOT THE CASE. They have neither approved nor rejected the proposal – but I understand that they have asked for more details.
GM our biggest creditor has approved the proposal.