SCNA Chapter 11 Notices Arriving In The Mail

Saab owners nationwide have started receiving notices of the chapter 11 bankruptcy filing for Saab Cars North America.  As stated in the notice, the meeting with the creditors is fast approaching: April 4, 2012 at 9:30 AM (ET) at 844 King Street, Room 2112, Wilmington, DE 19801.

As this creditor meeting occurs well before the receivers will be announcing their verdict on the current bid for Saab Automobile AB, it remains to be seen whether the creditors will reconvene at a date following bid finalization.  It has been widely believed that this filing for bankruptcy protection was actually intended as a measure to “buy them some more time” as the bidding process continues.  Seeing assets from SCNA being auctioned off, as we have earlier was a gut-wrenching sight but let’s be hopeful that this will allow the dealer network in the US to be held in-place long enough so that us here in North America will be apart of the Saab restart that we are all waiting for.

Read the Letter here:  Saab North America – Chapter 11 Notice

49 thoughts on “SCNA Chapter 11 Notices Arriving In The Mail”

    • There is nothing stopping us from doing another convoy in the meantime (it certainly wouldn’t hurt).

      That being said, as Victor Muller pointed out in the recent radio interview, we were heard loud and clear. So, I have no doubt in my mind that the bidders know very well that we are waiting on the sidelines.

  1. Yeah, the length of this process has surprised casual fans like me (with some common sense) but also business owners who actually know better—-they too were expecting this to be sorted out by now and rightfully. This has become laughable—-a farce.

    • I wouldn’t call it a “farce” by any stretch and it certainly isn’t funny.

      The conditions around a sale of Saab, and a potential restart, are unbelievably tough. The fact that we have several major bidders with this level of interest and have been sticking with it so long makes it painfully obvious that they are straining very hard to put something together that works. Time is not on our side, no doubt, but there really isn’t much margin for error at this point so they absolutely have to get the deal right.

      • Oh well, tragic paradox then, isn’t it? The liklihood of success evaporates more and more every week. Ryan: It’s a crisis. In a crisis, you have to act fast and do your best. This is an emergency for survival, not a chance to “get it perfect.” Getting it perfect is destroying any hope there once was. I’ve said it before—-I am quite certain that a few really smart business people with big league corporate experience could have reviewed the bids and in less than a month, gave a recommendation that would have been the right one. Also, large companies in a bid situation like this have staffs of donens to perform the research and financials to put a bid package together quickly—-could have met a bold deadline if one had been given. Any company too frail to run with the big dogs and who couldn’t come up with a confident bid isn’t one that would succeed anyway—-they’d of been a dreamer and enough of that now. It’s been botched.

        • Well Angelo, one thing is for certain: the receivers undoubtedly have an extremely tough situation to sort through, and time is obviously in short supply. I honestly haven’t seen any evidence that there are “few really smart business people” that could somehow resolve all these issues in “less than a month”, but perhaps I am mistaken as I just haven’t seen anything like what we have witnessed with Saab.

          • Ryan: Please. It’s admittedly very important to thousands of us and far more important to the Saab employees who are still unemployed—-but there are mergers and aquisitions, business deals, etc.—-as well as municipal bids, bankruptcies, etc. that involve a lot more money than this and affect a lot more people and if there’s a reason for expediency, they light a fire under their *** to get it done. I can’t speak for Sweden about their business practices—-but you’re right—-we haven’t seen anything like we have witnessed here—-that’s the reason all the stops had to be pulled out for an extremely fast resolution for a company to make a go of this. No one has explained yet with any clarity why 1500-2000 hours of work can’t accomplish this sale. What are they doing, sitting on their hands? Playing video poker? People who don’t like what I’m saying and even those who do: Tell me, if you have to be really honest about this—if your life depends on an HONEST answer (more than an accurate one, an honest one)—-do you think they have moved as fast as they could have? Do you think they have worked as hard as they could have? Is this a 100% rapid fire effort, or are they loafing a little, or a lot? If you can look yourself in the mirror and say “These Receivers have worked at peak efficiency, 100% effort, no wasted time, fully committed to the fastest but most reasonable decision.” If you could say that—-you’re either a really good liar or you’re dellusional. And to say “They can’t break a speed record, too much is at stake” realize that what’s at stake is disappearing every week—-turning into selling off parts. I didn’t think that’s what we wanted and I still don’t think it’s in Sweden’s best interest—AND I find it hard to believe companies like Youngman or Mahindra aren’t coming in with a bigger offer than parting Saab out is going to bring. But that’s where we’re headed if this isn’t resolved right away. It’s been a slow, painful bloodletting, or like Chinese water torture (ironic, isn’t that). Youngman or Mahindra—-or another bidder—-should have been picked long ago and at this point, all parties should be working to figure out how to salvage the factory, produce some sort of Saab vehicles ASAP and try to stop this death and reverse course. A few years of losses were expected by these bidders. This sort of indecision and apparent incompetence was not expected. Sorry, but calling it like I see it. The frustration is talking and so is the common sense.

  2. Today I saw a clip of SAABs last commercial on YouTube. It made me unbelievably sad. I still can’t believe it. PLZ someone BUY IT!!

  3. Are there any Canadian dealers included in this filing? As I understand it, SCNA also includes the Canadian operations as well. Perhaps Jason Powell can clarify how or if it affects the Canadian half of North America. 🙂

    • To be honest Richard, I don’t know exactly how the filing works in Canada as it is not a part of what I do. I do know the dealers had spoken about this but will need to try to get clarification on that.

      • Fantastic. Thanks Jason. I may be a province away from you, but having dedicated folks and dealers like you still kicking hard in these darkest days of Saab are very encouraging.

        • Richard, looks like we are not a part of this as we fall under the umbrella of IFS which is our importer. Some of the Canadian provinces also don’t have franchise protection like they do in the US which leaves our dealers on their own.

          • Interesting. Thanks for checking into that Jason. So for all intents and purposes SCNA is really just Saab USA under a more grandiose moniker. 🙂

  4. Haven’t received mine, it will come to my company since car is owned by my employer. So now what happens? SCNA owes me a warranty, which without parts might be worthless I guess but is there any recourse as a group we have a chance to claim that the purchase price of a third party warranty should be awarded? Last I read SCNA was actually worth more than their debts due to the US parts inventory and operation and I guess other assets, maybe unsold cars or something, of course I’ve read a lot of things in past 12 months about Saab that also didn’t turn out to be quite what first impressions would have indicated.

  5. Yes that’s a great idea…let’s file a claim against. SCNA/SAAB, ya, thats the ticket! Lets all sign up for a class action!

    All this does is add more costly and time consuming legal troubles to SAAB. That is not something I would to do. It could hinder EVERYTHING if that were to happen.

    What a great way to add fuel to the fire and help drive the last nail into the coffin.

    • I’ve been very loyal to Saab and I’m not going to apologize for wanting what I paid for. I see it as every owner for 10 or 11 is also one of their creditors, just like the dealers, and GM and the company that fills the coffee and Coke machines at the SCNA office. I feel no allegiance to SCNA who didn’t even have the decency to send out a letter to the affected buyers – they posted something at http://www.saabusa.com on December 23, 2011 and promptly deleted their contact information and nothing since. They’ve already sold off assets to pay creditors, I’d like to be in that line not on the outside looking in.

      • I also am 2010 9-3 owner/leasee as are BMW Rider and P. Saab4Life, in all respects do you own/lease a 2010/2011 pre-bankruptcy car?
        It blows my mind to hear someone basically say that we shouldn’t be upset that we don’t deserve to have our warranities reinstated, or compansated for the lose of such. WE PAID for them, and we had them take away!! I am HOPING for a class action suit, because what is fair, is well FAIR!
        The Saab that we know and loved is GONE, and IF some other company brings them back, do you REALLY think it will be like the one and only “Saab” from before?

  6. When I read the post about the press conference, I was completely surprised that nobody could read between the lines. Maybe it was just me, I’ve been home all week with the flu, but the receivers replies to the questions were completely contradictory to what they first had stated as their goal for the sale of ALL of SAAB.

    Did they not say first: “We want this to be done Asap, find the best fit for SAAB” “We want SAAB to be sold as a whole company” “The highest bidder may not win the bid” – Last press conference- “We haven’t read what every bidder intends to do with SAAB” “Our goal is the get the most money from the estate for the creditors”

    I’m really disheartened by what I have been reading, feel that I want SAAB to survive as much as anyone here, and spent 2 of the best years in college working for SAAB.

    • It’s a cold slap in the face, isn’t it? Depending on how this ends, I’ll either say “Guess I was wrong—-the Receivers knew what they were doing and patience paid off.” or I’m going to say “What filthy leeches.”

  7. Let’s wait and see how this ends before we start passing judgment on how the receivers are doing their job. It’s their job to get as much money for the creditors, that statement is totally uncontroversial. Presumably the creditors, mostly Saab’s suppliers, have a greater financial interest in an ongoing business than getting one, and only one, check for half or less of their outstanding invoices. The receivers aren’t likely to impose a solution that the creditors are opposed to.

    If there is a legitimate offer on the table for continuation of the whole business, I doubt the receivers would be in a position to reject it, legally or politically. The critical factor is the exact content of the bids, however.

    We shall see.

  8. Greg +1 your absolutely right, continuation of the whole business is better for everyone from dealers to suppliers, creditors and loyal customers.

    • Absolutely right, but that is not what the receivers are saying, I am just pointing out from the past press conferences. I read every bit of the information I have commented on right on SU.

  9. Just one small point. The fact that this is a chapter 11 bankruptcy and not a chapter 7 bankruptcy is quite hopeful. Chapter 11 means that the administrators believe that there is still a viable business for the company, as chapt 11 will allow debts to be re-negiotated. Chapter 7 (I think its chapter 7) winds the company up.

  10. KingRichardSaab – I’m just saying that adding to the obsticles right now would hurt things at this stage.

    If SAAB restarts with a new parent the there is a chance, albeit slight, that the warranties could be reinstated. If SAAB is truly killed off then even that slight chance is gone.

    Yes I own 2 SAAB cars that have lost their warranties. A 2011 9-3 2.0t and 2011 9-5 Aero that I bought December 29th, 2011 as a show of support for SAAB.

    (p.s. there are 3rd party, post purchase, warranties offered by maybe companies if someone wants one. I don’t have any warranty, I bought it that way. I’m considering the 3rd party option but have not made a decision yet.)

    • You do what you want but as for me I want what I paid for. That’s not an obstacle that’s a contract and a contract that was violated. Not much different of a situation than any other creditor of SCNA who wasn’t paid. The dealers and other creditors are going after their share, I’d like mine too.

    • Saab4life…So you bought those cars at a huge discount reflecting the “as-is” no warranty condition right? Whereas my son bought his in October, price paid to INCLUDE warranty. Makes me sick to my stomach all these “I don’t care about the warranty” comments… good, Im glad you can afford to pay out the backside for repairs to a new car. This is totally irresponsible of Saab how they had nothing nor have offered nothing for honoring the warranty and service.

      • P, 74StingSaab, BMW Rider and the rest of us with 2010/2011 SAAB’s without a warranty (AND that ALSO PAID FULL PRICE , or leased at FULL price) thank you for letting me know that I am not the only one that is angry.
        And like you all, I am SICK of people trying to tell me that I’m “Naughty” for feeling burned about wanting my warranty. And NO I shouldn’t have to go out and “BUY” a 3rd party warranty, when I bought one in July 2010 with my NEW Saab 9-3 SS.

  11. KingRichardSaab – Also, and is just my viewpoint / my opinion talking, the warranties were not “taken away” as you put it.

    The term “taken away” implies a purposeful act and in some ways can be considered synonymous with “stolen” (i mean that in a manner of speaking – not the most absolute sense).

    No matter ones personal opinion, I can promise you that VM, SWAN and everyone else affiliated with SAAB did not hope for or want to file bankruptcy. If they had their way, like us, we would not be where we are today. They had no choice but to enter bankruptcy and the events pushing them into bankruptcy and finally entering into it, the warranties are gone because they are/were insolvent and not due to any malicious action on SAABs part.

    So yes, warranties have been lost but that is more a victim of the situation and not a victim of a brand purposefully hurting its customers.

  12. Everyone except GM! That is who I think is behind everything since the day before the bankruptcy. I do not understand the tip toeing around the matter, its plain and simple. Everyone who is involved or has been involved in this whole mess knows exactly what happened, it makes me so infuriated that eveyone is trying to just brush it aside as it is just another normal occurence or keeping it a secret.

    There is no warranty because there is no SAAB, there is no SAAB because nobod
    y was allowed to invest, or buy SAAB, and now there are bidders dropping their bids because, there is no licenses for technology to build any SAAB’s. This all boils down to 95.5% GM.

  13. 74Stimg, Actually, no. I did not get the huge discounts that we have seen.

    9-3 = $31k
    9-5 = $49k
    (No cars traded in. I gave my wife’s 2009 9-3 2.0t to my step-daughter because her & the fiancé need a car badly but cannot afford a dime extra in bills without not being able to pay rent…so all though it’s financed and the note is still in our names, we just wanted to help them.)

    Yes there some discounts but not huge as you can see.

    BMWRider, I guess we just have a differe opinion on the matter. That’s not a bad thing, just how it is. I respect your view on the matter.

    And Aero1 you are correct about GM and their acr

  14. Oops…..

    And Aero1 you are correct about GM and their actions. I agree 100% that there are many many people involved who “all have skin in the issues”. Every person you mention and more all share part in the bankruptcy.

    I was just saying that this not the outcome they hoped for…. This outcome was never on a goals or objectives list etc.

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