When the District Court in Saab’s home region of Vanersborg denied the struggling auto maker bankruptcy protection from its creditors, most of us assumed it was the final chapter in Saab’s storied history. If the automaker’s home court couldn’t fathom a way to reorganize the automaker to profitability, it was highly unlikely that an appeal court would see otherwise.
If we’ve learned nothing else about Saab over the past year, we’re learned this: never count the Swedish automaker out. The Detroit News reports that an appeals court in Western Sweden has granted Saab bankruptcy protection, declaring that “a more thorough investigation can show that the prerequisites for a successful reconstruction exists.”
This doesn’t mean that Saab is out of trouble just yet, since any reorganization plans are tied to funding committed by Chinese partners Pang Da and Youngman. Both deals are pending approval of the Chinese government, who has so far been reluctant to allow domestic companies to partner with foreign automakers (excepting, of course, the deal between Geely and Volvo).
Now that Saab has been granted bankruptcy protection from creditors, the company’s focus turns to reorganizing operations. The Swedish government will pay Saab employee salaries over the reconstruction period, expected to last a minimum of three months.