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.