Saab has been given more time to pay its workers and clear its 150-million-euro debt currently owed to suppliers, after a Swedish court today granted leave to appeal a local court’s decision which rejected Saab’s application for bankruptcy protection.
After a long string of delayed payments both to Saab and subsequently Saab paying its workers and suppliers, the embattled Swedish manufacturer has been given a breath of hope and relief. Saab, which will face a bankruptcy hearing at court next week, has applied for more time as it waits for promised investment funds to come through from Chinese companies Pang Da and Zhejiang Youngman.
Saab asked the court for leave to have the case re-examined while it waits for the 245-million-euro investment to come through. The court has just decided to grant leave. Saab spokeswoman Gunilla Gustavs recently said,
“We are naturally pleased. It is an important step in the right direction. We are hopeful.”
The court hasn’t decided yet whether to grant Saab bankruptcy protection from creditors, however, a decision is set to be reached soon. Ms Gustavs said, “It should come soon, hopefully this week”.
“We continue to work on getting further funding and we are also proceeding with the work to prepare the company for reconstruction. Now we have to wait for the appeal court’s decision.”
What do you think? Will the investments come through in time? And, more importantly, will the investments be enough to revive the Swedish brand?