Saab to appeal the rejected case of re-organisation on Monday


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Friday, 09 September 2011
Saab Automobile owner,  Swedish Automobile will on Monday submit its appeal of V�nersborg district court's decision to deny the company voluntary re - organization to the Court of Appeal. The company expects that the Court would take a new and quick decision.

In the meantime, discussions with several parties in the search for short-term financing are till ongoing, the company said.
“The appeal will be improved with new information,” said CEO Victor Muller to radio Sweden in the morning, though he did not specifying the details.

Muller also said that he was ready that should there be yet another legal setback in the appeal, he may be ready to go to the Supreme Court. According to Muller, Saab has money for workers' wages, but can legally not pay them due to what the company owes subcontractors.

At Saab Automobile factory and the city of Trollh�ttan, near Gothenburg, the mood around is really negative though some people had expected that preparations should start for gradual breaking down of the company.
Some people believe that Saab might still have some green light and that it could take some time but others feel that the Saab automobile brand is heavily affected and that the company should just leave it and call it a day.

“It would have been much easier and more enjoyable if the decision was the opposite, but now it's not true. We must try to deal with the situation as best we can. We're used to living under pressure,” said workers union head, in the Saab factory Hakan Sh�ts on Friday morning.

Some authorities and media reports in Sweden now hold that it is only reasonable for Saab to match forward towards bankruptcy. This is the only way to stop the pain not for Victor Muller's sake, but for the employees’ sake. They, together with suppliers, dealers and customers have been spun enough around the circus of Muller, according to a report on Swedish daily Dagens Nyheter.

It also reported that the District Court in V�nersborg withstood the local pressure and took the right decision. Something else was not to be expected from Judge Gunnar Krantz and Councillors Cecilia Tisell and Patrick Baer Elman.

The hold that Muller's business plan began to crack after only one semester. At the end of it there was cash was dried and bills were mounting. Three months later, production stopped.

Of this year's planned sale of 80 .000 cars, so far only 13000 has been sold. Suppliers are owed up to Skr1.35 billion, employees are still waiting for August salaries.

The question being asked by various Swedish media outlets now why is Muller holding back the company from free fall to bankruptcy where there don’t seem to be any way forward to fit to turn around?
By Team

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