GM Bankruptcy and Saab

There’s a new article from Fairfax press here in Australia which covers a little of the comment from Saab. The GP article, below, has more details, though.

Saab Automobile, owned by US giant General Motors, was confident it would find a new owner and not be impacted by a possible bankruptcy of its US owner.
“We are working on our process, and GM is selling Saab and that process is not impacted at present,” Saab spokeswoman Gunilla Gustavs told Swedish radio news.
Gustavs said the group was “optimistic” and the attempt to find a new owner “was in its final stretch.”

Thanks Richo!
The GP article is below…..
With GM’s entrance into Chapter 11 looming closer by the day, many are wondering how it might effect Saab and their reconstruction and new-ownership plans.
The following article appeared in the Gothenburg Post.
A few notables in this Googletrans:
1) Saab’s new models and the tooling are all covered and paid for.
2) Saab are technically owned by a Canadian subsidiary of GM
Saab ‘sit quiet in the boat”
Saab Automobile say they sit calmly in the boat despite the storms around owner General Motors.
– Our plan will continue, regardless of GM’s position,” said Joe Oliver, spokesperson for Saab, told TT.
– We are on track to cut Saab [out from GM] and into an independent company and align with a new owner. The work is ongoing and will continue whatever happens with GM. We feel no panic,” he continues.
While Saab is completely dependent on GM’s cash. Since the month-long state wage has ceased Saab during reconstruction paid suppliers and salaries with borrowed money from GM. The loan is 150 million U.S. dollars, equivalent to 1.1 billion. Approximately one third have already gone to.
The question is what happens to the money if GM goes into some form of bankruptcy.
– The money is in an account earmarked for Saab and as the administrator has access. What we know so far, the account will not be affected,” said Joe Oliver.
Saab and GM believes that the chances of survival depend on the creditors agreeing to forgive a large part of their debts. For Saab’s part, GM is by far the largest creditor, with 90 percent of the debts of 10.5 billion kronor. GM has said that it agrees to Saab’s proposal for a composition, where only 25 percent of the debt is due within one year. But chords hearing is not until June 17 when GM might be contained in a reorganization.
GM has also promised to pay for the tools to build Saab’s new models, including the Saab 9-5. There are costs in 1,5-2 billion.
Saab remains formally owned by a Canadian subsidiary of GM. The sale will be under the administrator’s lawyer Guy Lofalks plan made clear in June.
There are ongoing negotiations with the three remaining speculators. This week, they have resulted in that only one candidate is left, but on Wednesday was the three. In all cases, according to Saab’s official version.
The speculation talk the most about Italian Fiat and the Canadian Magna, which also presented bids for the Opel, Chinese car maker Geely, Swedish sports car manufacturer Koenigsegg, backed by Norwegian financiers, and Renco Group is a U.S. investment company.
I think the overwhelming message there is that Saab should be able to proceed with their plans despite GM’s bankruptcy proceedings. Saab are such a small part of the process that I’m sure the courts in the US will allow things to proceed without a blink.

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