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Pang Da warns of Saab Depreciation as Workers union put the company in bankruptcy application

Tuesday, 20 September 2011
The saga within the Swedish auto outfit which the Chinese are interested in is not a good thing for the brand. With bankruptcy calls from all angles of the company, one of Saab Automobile’s prospective Chinese rescuers, the auto dealer, Pang Da, warns that the company could be forced to write off the money it had invested in Trollhättan.

The Swedish business daily, Dagens Industri writes that the Chinese auto distributor, Pang Da has so far brought in more than €45 millions, or some Skr400 million, to Saab Automobile. But in Trollhättan, the seat of Saab, its future depends right now depends on if the company can be allowed to carry out its reorganization. Even with that, a decision which is still pending, Pang Da’s leadership does not seem convinced of a successful process.

The company said in a statement that it could be forced to write off the advance payment to Saab Automobile, according to reports in autonews.com which the Swedish business daily examined.

The Chinese company announces that it will probably have to come up with money to cover up the loan loss that may arise as a result of the failure of their Saab adventure.

Pang Da has ordered 2,512 cars from Saab Automobile, but the factory in Trollhattan is well known to still long way from opening for car manufacturing. CEO, Victor Muller needs more money to start production again and is combing here and there to look for money.

Saab Automobile has appealed the district court's decision which rejected its application for re-organisation.  The Court of Appeal for western Sweden has agreed to look into it the case , but has not yet decided on the question of the re-organisation. The Court of Appeal's decision will come at the earliest Wednesday.

Worker Union, IF Metall Club is to petition against the car manufacturer and will apply that the company be declared bankrupt. This was supposed to have been submitted at 15 o'clock on Tuesday. According to news reports, at 15 o'clock today, the IF Metall union filed an application for bankruptcy for Saab to the District Court in Vänersborg.
"It is a very painful decision, but we need to secure members' wage claim and then we can not wait any longer, "says IF Metall Federal Chairman Stefan Löfven and the local union shop steward at Saab Hakan Skött.
By Scancomark.se Team

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