As quoted in Automotive News (subscription required), Jim McTevia, the administrator appointed to SCNA, said, “We notified creditors that there is no way to salvage the company.” McTevia went on to clarify that the U.S. parts distribution business was “the only meaningful asset.”
Tim Colbeck, president of SCNA, remains optimistic that a buyer for the parts business can be found by the end of next month. While a market for Saab repair parts will remain, it’s not yet clear if a U.S. company will buy the distribution business.
The business is likely to have limited appeal. As of now, no new parts inventory is inbound, limiting supplies to stock on hand. On the plus side, SCNA resumed delivering parts to Saab dealers on January 19, after suspending deliveries on December 19.
Saab’s 188 U.S. dealers will now be faced with filing for Chapter 7 bankruptcy or waiting for the liquidation of SCNA. A lawyer representing 161 of Saab’s 188 dealers, Leonard Bellavia, views the asset picture differently from McTevia.
By Bellavia’s estimates, the liquidated assets will have a value in excess of $75 million, including $25 million owed by General Motors for repairs covered under warranty. He projects the liabilities to be in the range of $10.5 million.
Don’t expect a speedy resolution to SCNA’s fate, since as McTevia puts it, there’s “all kinds of litigation” relating to its shutdown. Like the death of Saab Automobile (which still may not be over), expect the death of SCNA to be equally painful and drawn out.