Saab voluntary reorganization proposal approved by Court of Appeal

By Caroline Salls

Pittsburgh, Sept. 21 - Saab Automobile AB and subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB received approval from the Court of Appeal in Gothenburg, Sweden for their proposal for voluntary reorganization, according to a news release.

The company said the purpose of the voluntary reorganization 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 appeal court overturned an earlier ruling by the District Court in Vanersborg, Sweden.

According to the release, Saab will request that the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be canceled.

In a separate release, Swedish Automobile NV said Saab has launched an efficiency improvement initiative as part of a broader review of the company's business plan for 2012 and beyond, aiming at creating a more flexible and more competitive cost structure for the company.

Swedish Automobile said this initiative also reflects the effects of a prolonged production stoppage since April of this year and is an important element of the voluntary reorganization plan that will be presented at a forthcoming creditors meeting.

During the coming weeks, Saab Automobile will identify areas throughout the whole organization where efficiencies can be gained, Swedish Automobile said.

The initiative will focus on both fixed and variable costs and aims to create a lower and more flexible cost structure within Saab Automobile by eliminating duplication of work, streamlining processes, shortening lead times, improving coordination between departments and simplifying the organizational structure.

The company said headcount reductions cannot be ruled out as a result of this initiative.

All improvements should be implemented before year-end in order for Saab to have a new, competitive cost structure for the 2012 financial year, Swedish Automobile said in the release.

Saab is a Trollhattan, Sweden-based car manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.