Saab saga continues

Things just don’t get any better for Saab.

Every week brings a new development, and every week the company's interpretation (whether the development is positive or negative) is the same: "This is a step towards securing our current viability and our long-term future."

The latest is the refusal by the District Court in Vanersborg, Sweden, to grant Saab Automobile a "Voluntary reorganisation" that would have allowed the company, with the help of an independent administrator, to develop a new business model pulling numerous loose ends together – such as a group of unhappy creditors and a dormant production line – while forming a plan for long-term viability.

Central to this is the rescue plan concocted earlier this year with Chinese car distributor Pangda and carmaker Zhejiang Youngman Lotus Automobile Co, which was originally thought to have been the magic bullet securing SAAB's future.

However that deal – which involved the purchase of Saab vehicles to a value of A$60 million for sale on the Chinese market, followed by an $A87 million acquisition of 24 per cent of the company – has failed to stabilise Saab as it awaits the necessary cash resulting from the agreement enabling it to re-start production.

Other fund-raising schemes are being considered by Saab too.

Prior to the court ruling, a statement from the company recently said it is "Now working on other options to secure bridge funding which would allow us to stabilise operations, finalise negotiations with suppliers on payment and delivery terms and restart production."

Saab, after the decision by the court, said it was "disappointed with the ruling and will appeal the District Court's decision."

However it has been reported that the powerful IF Metall union, representing around 400,000 workers, is considering having the company declared bankrupt "within days."

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