Saab announced today that it has received a second chance in life as the Gothenburg Court of Appeal approved its voluntary reorganization plan, overturning the Vanersborg District court’s previous ruling.
In contrast to the District Court, the Court of Appeal agreed that Saab’s plan to secure short-term funding and protection from its creditors conforms to the Swedish Company Reorganization Act.
Of course, this is very good news for the troubled automaker, which is getting ready to implement its reorganization plan. Under the bankruptcy protection plans which is similar to Chapter 11 in the U.S., the Swedish carmaker has three months to reorganize, but Saab may ask for additional time.
Saab says that it has already launched an initiative to improve its efficiency and review its strategy for 2012 and beyond. The company’s aim is to create a more cost efficient company, identifying areas where costs can be cut, processes can be streamlined and cooperation between different departments improved.
So, all’s well that ends well? The answer to that question is at least for now. The good news is that Saab’s 3,700 workers will retain their jobs, its creditors will be informed shortly of the voluntary reorganization plan, and life at Trolhattan will hopefully resume its natural course until the Pang Da and Youngman deal money arrive to make the future look a bit brighter.
Unless, of course, there is yet another chapter in the book titled “Saab’s Survivor Guide”…
