SCNA Has Won Approval For Its Chapter 11 Plan

While checking for what Saab news I could come across this morning, I came across a completion to the almost year and a half bankruptcy process of Saab Cars North America. The article was posted yesterday at 7:58PM and stated that Saab’s US unit gets nod for ch. 11 liquidation.

Some of the important points from the Law360 post are below:

The estate of Saab Cars North America Inc. is expected to have a liquidating trust of about $20 million to use for disbursements that will see administrative, priority and secured claims paid in full, attorneys for the company said in court.

U.S. Bankruptcy Judge Christopher S. Sontchi said “good lawyering” helped navigate what began as a rancorous case into the home stretch of a seemingly peaceful close.

“This is certainly a much better result than it looked like it would be in the beginning,” Judge Sontchi said from the bench. “I’m happy to sign the [confirmation] order.”

Under the plan, all classes of creditors except those holding unsecured and equity claims are expected to receive a full recovery.

Unsecured creditors owed $77 million are expected to receive anywhere between a 25- to 82-percent recovery depending on the success of certain estate causes of action and whether Saab AB and Saab Parts AB eliminate or substantially reduce each of their intercompany claims against SCNA, according to the disclosure statement.

Equity holders are expected to receive nothing.

Ally Financials claim of 18.5 million will be listed as satisfied after reaching a settlement in May, according to the court records.

Under the settlement agreement, Ally will see about 3.8 million from the sale of vehicles that had been in port with the rest, about 13.6 million going back to the SCNA estate.

I had reached out to Tim Colbeck to ask for his thoughts on yesterdays decision and his response was that “Yesterday was bittersweet, in that it represented the final disposition of SCNA, but  also the result was as good as it could have been given the circumstances.”

Yes, this really does seem to be as good as it could get given all the circumstances surrounding it and it feels good to see that a large number of creditors are expected to receive a full recovery. This chapter is nice to finally see come to a close.

 

OurMoldySaab
Member
3 years 2 months ago

It’s too bad with all that money, they couldn’t throw any of it at the 2010/2011 owners in the form of extended warranty. What is it? 5000*500 = 2.5 mil? I got the bankruptcy notices in the mail, but it was in so much jargon, I had no idea what to do with them. I just took the stance that I had no claim against SCNA.

In other news, Mr. BS from TTAC has been fired! 🙂

Angelo V.
Member
3 years 2 months ago

I guess there would need to be a class action suit? It’s a shame—-because anyone who bought one of these Saabs with a warranty—-then lost the warranty—-in my opinion, is a creditor of sorts. I guess the law says they aren’t—–but the way I see it, Saab owed them warranty coverage and if they can’t deliver that, it should be treated as an unpaid bill. I think a consumer friendly judge might rule in favor of Saab owners, especially if the trust money is available.

Harriet
Member
3 years 2 months ago

consumer friendly judge? get real!

Angelo V.
Member
3 years 2 months ago

“This chapter is nice to finally see come to a close.” I hope it’s the end of a chapter and not the end of the book. The way NEVS is handling their ownership of Saab, things are looking horrible for North America. Here’s a case of “No news is lousy news.” Thanks NEVS.

Chris Hansel
Member
3 years 2 months ago

Jason: It clears the field for the future, and puts to rest the past. Living in, and complaining, about the past is counterproductive at best.

Chris Carrier
Member
3 years 2 months ago

I guess I thought I’d get some token check, like $50 or something.

After 2 1/2 years of ownership, there is only one small problem I’d have a warranty cover, and it looks like something I can buy myself for about $120. So far, so good. I really hope to reach that four year mark having lost little to nothing, excepting the oil changes.

Steve C.
Member
3 years 2 months ago
Since I applied last year for relief as an unsecured creditor since I lost my warranty on my 2010 9-3 SC, I received the ballot to vote on the proposal that was due on July 9. It appears that after the vote a quick decision was possible for its approval. It is nice to hear that most classes of creditors (except mine) will be paid in full. I knew what I was in for as an unsecured creditor but if I actually get back the low end of 25% of my claim, that will be about US $5,000. But who… Read more »
Baver
Member
3 years 2 months ago

I purchased my NG 9-5 well before bankruptcy, but have never received a single piece of info regarding the bankruptcy proceedings. Why not? Did the dealer fail to notify the proper people? Did Saab toss the paperwork?

Angelo V.
Member
3 years 2 months ago
It’s interesting. If a lawyer took this case and tried to force an action in court—-I wonder what a judge would say? “You waited to long to file a claim.” Well, to your point Baver, I doubt that any owners received certified letters (or any official correspondence) from Saab or the dealers, specifically notifying them that warranties were withdrawn (unilaterally by the way, not there was a choice) due to bankruptcy. Owners could make a case that they came to the lawsuit party late—-because they were never informed by Saab or Saab dealers that this was happening (unless I’m mistaken,… Read more »
Angelo V.
Member
3 years 2 months ago
Steve: Is it possible to ask for an injunction to stop liquidation until the class of owners who lost warranty coverage to be heard? Sort of a cease and desist of paying out creditors until a resolution? The law is the law—-but it’s also open to interpretation. Losing a warranty on an automobile could cause damages of many thousands of dollars. At the very least, the warranty itself should be assigned a value and perhaps people who suffered loss of said warranties could get a percentage of that value from the fund. I was amazed last year, when some people… Read more »
Steve C.
Member
3 years 2 months ago
Angelo, I filed a claim because of my warranty issue since I received an official notification from the “bankruptcy process” that I was an unsecured creditor (by virtue of being an owner of an applicable Saab impacted by the bankruptcy). In addition to the warranty loss, I lost the Roadside Service and the Scheduled Maintenance for the remaining period. For that total loss, I assigned a value of the vehicle that could be substantiated with my sales document (and it wasn’t MSRP). To your question, yes is is technically possible to file an injunction but it wouldn’t likely happen since… Read more »
Angelo V.
Member
3 years 2 months ago
But to Baver’s point (above) it appears some people never received notification about this. I wish you the best with this. My belief is that it is just as difficult for car owners to absorb this loss as it is for companies to absorb their losses (the larger creditors). To me, your purchase of the car was comparable to a contract—-and one of the conditions of the contract was the terms of the warranty that was part of the purchase. For that to be taken away—-in my mind, creates a situation where you are entitle to receive something from the… Read more »
Baver
Member
3 years 2 months ago

Thank you, Angelo.

guy davidson
Member
3 years 2 months ago

As far as I am concerned SAAB owes me $4000 for the repair I had to pay for on my 600 mile 9-4x… yes I bought it with a warranty. Let me know if you need a poster boy for your class action law suit.

wpDiscuz