Saab Automobile Voluntary Reorganization Filing Approved
Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) received approval for their proposal for voluntary reorganization from the Court of Appeal in Gothenburg, Sweden today. 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 Swedish Company Reorganization Act says that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganization will be achieved. In today's decision, the Court of Appeal has found that such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg, Sweden.
As a consequence of the Court of Appeal ruling, Saab Automobile will request for the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.
Saab Automobile To Improve Efficiency As Part Of Business Plan Review
Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) 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. This initiative also reflects the effects of the 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. 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. As a result of this initiative headcount reductions cannot be ruled out. All improvements should be implemented before year-end in order for Saab Automobile to have a new, competitive cost structure for the 2012 financial year.
