Swedish Automobile N.V. (Swan) has announced that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) have received approval for their proposal for voluntary reorganisation from the Court of Appeal in Gothenburg, Sweden.
The purpose of the voluntary reorganisation process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions by Pang Da and Youngman.
The Swedish Company Reorganisation Act says that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganisation will be achieved. The Court of Appeal has found that such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg, Sweden.
As a consequence of the Court of Appeal ruling, Saab Automobile will request for the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.