Court decision next week
October 21, 2011 in News
There will be no decision from the district court until earliest at the end of next week. Saab is first to get a chance to state its case to the court and they will consider that.
Saab has a few days to get the bridge funding in place and then plead its case to the court. On the 31′st of october a creditors meeting will take place and the court needs to make its decision before that. The 31st of October is a monday and Saab’s deadline to plead its case is thursday at around midday so the court has one and a half day to consider its decision before announcing it.
I think we all can imagine that Victor Muller and the rest of the Saab guys will have another weekend of hard work ahead of them.
MeanSabean said on October 21, 2011
I think this time that the fat lady is starting to clear her throat !
ryanonsrc said on October 22, 2011
Yeah this proverbial “fat lady” is pissing me off … getting up and sitting down in her chair repeatedly.
Someone should just tell her to go take a hike
Meller said on October 21, 2011
No…she’s already strated singing: Show me the money VM, just show me the money….
And he is so stuborn….
JasonPowell said on October 21, 2011
maybe, just maybe he is committed. This thing has taken so many twists and turns and one thing that has never changed is his commitment to seeing this through and he shoulders everything on himself.
ANA said on October 21, 2011
I think Saab gets to defend their case on the 27th and then there will be an answer from the court on the 28th.
Tripod said on October 21, 2011
Has Tim updated the post? Because you write exactly what he said above, and if he hasn’t updated the post why iterating it?
skwdenyer said on October 21, 2011
Are there 2 hearings or just 1? Will Saab’s petition to replace GL be heard and decided before GL’s petition? If the Court allows Saab to replace GL, can Saab force GL’s petition to be withdrawn?
Tripod said on October 21, 2011
The replacement of the administrator isn’t the main task, IMO, if the reconstruction is ended then there’s no need for an administrator, obviously. So, first task would be to consider if to end the reconstruction prematurely, or not. If not ended, well, Saab wants to replace him, that’s one fact, it seems, but also given what Lofalk has written (that he sees no possibilities to maintain the reconstruction of the companies, caused by lack of funding, disagreements (between the parties), and lack of time, and that he says that it is up to the shareholders, creditors and potential investors to find the best solution) he doesn’t want to continue, he doesn’t say so, but it can be interpreted as that.
RS said on October 21, 2011
Tripod, your previous SVT link brought up an interesting interview with Lofalk.
He believes Saab has great technology, great products and a bright future if SWAN and the Chinese get back on track with the agreement (money actually comes into Saabs accounts).
He’d love to continue with the reconstruction if that happens… interesting.
Tripod said on October 21, 2011
Yes, that’s a recent one. A lot of “naysayers” from abroad, it seems, have been saying that the administrator has all the powers to decide when it’s actually the shareholders and potential investors that has to get an agreement; the administrator’s work, beside administration of the salaries etc. is to check the financial status, research possibilities, create a reconstruction plan together with the debtor etc., but he can’t force a sale, just like that.
Don’t know, maybe the abroad, US, whatever, making comments are mixing with their knowledge about chapter 7 & chapter 11 under the Bankruptcy Code; but this is Sweden, and Swedish law, and reconstruction, not bankruptcy.
My comment above about the impression that he might not want to continue was just one interpretation. But the petition isn’t about that. Lofalk sees the lack of funding, “working capital”, during the reconstruction period as the main problem, and that’s what it’s all about, and why he is forced to turn to the court. And yes, he’s hoping for a solution.
RS said on October 22, 2011
It was also mentioned that he doesn’t think a bankruptcy would be in the best interest of the Chinese. So, by calling off the reconstruction Lofalk is basically forcing the parties to come up with a solution by next week.
Maybe Pand Da and Youngman thought that Lofalk is now the new man in charge of Saab and they can shake a better deal out of the situation than the one previously agreed with VM.
Everyone needs to get just brutally honest here and laugh off each others poker play and get back to work on The Deal IMHO. If VM hasn’t come up with something better, which I doubt.
StateofNine said on October 21, 2011
Keep fighting Victor!
74StingSaab said on October 22, 2011
to VM and all our our friends working for or in support of Saab, we’re all pulling for you.
peeceepeh said on October 22, 2011
I still have the impression that Lofalk and Muller actually are pulling on the same side of the rope. And in the same direction. Their biggest asset is that a bankruptcy will be bad for everybody in the game. So they are trying to force PangDa and Youngman to stick to the agreement. Muller talks to NSC, just to show to PangDa and Youngman: we do have a serious (there is already money involved) option. Lofalk talks to Geely, just to show to PangDa and Youngman: we do have a serious option. Speculation about NSC+PangDa are launched, just to show to Youngman: there is a serious option, so put your money on the table. Lofalk asks to terminate the reorganisation, just to show to the parties: Time is up soon, hurry up! So I’ll keep my fingers crossed.