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The tale of a sick man that live on: Saab given another chance of life once more - reconstruction

Wednesday, 21 September 2011
Well, it was feared that Saab automobile will be dumped into the scrap heap of the piles of great car brands that have gone under – only that in Sweden, sometime, there is the feeling of ‘try once again and don’t give up.”

Today the Court of Appeal for western Sweden has accepted Saab Automobile's request to pursue reconstruction, something that was previously rejected last week by the bankruptcy court in Goteborg, sweden.

According to the Court of Appeal, there is reason to question the conditions for a successful reorganization of the company. But in light of the statements made in the legislative history of the Act, it is clear that the court should give consideration of an application for a company if it has reasonable grounds to do so.

"In this case, the Court of Appeal considered that a more thorough investigation can show that the conditions for a successful reconstruction exists and that the requirements to initiate corporate restructuring of Saab Automobile AB, Saab Automobile Powertrain AB and Saab Automobile Tools AB are met," the court of appeal said in a press release.

One of the members of the court, the Court of Appeal president, Gunnel Wennberg had a  view and wanted to establish the district court's decision, that is to say “no to reorganisation”.

Shares in Saab owner Swedish Automobile lifted by 25 per cent to 1:11 euros after the announcement of the reorganization by the Court of Appeal.

Swedish Automobile shares have for today lifted though the company has been over half a year in crisis, with stagnant production in the factory in Trollhattan. The shares had collapsed from an annual high level of €5:79 in February.

However, the Court of Appeal president, Gunnel Wennberg, said that “the condition that the company has described in the application and the appeal does not meet the requirements that should be addressed so that the right for reorganization shall be granted.”
She refers to the repressed financial situation, which the company has since a long time been in. She also emphasizes that the previous reconstruction was not successful.

Reorganization will now begin at Saab Automobile and subsidiaries, Saab Automobile Powertrain and Saab Automobile Tools.

The district court shall appoint the administrator. Saab has itself proposed attorney Guy Lofalk who was administrator at the former reconstruction 2009.
By Scancomark.se Team

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