Saab gets some more breathing time, gets approved for bankruptcy protection

Saab Automobile has received approval for their proposal for voluntary reorganization from the Court of Appeal in Gothenburg, Sweden today.

The move gives Saab some breathing room to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions by Pang Da and Youngman. Saab hopes creditor protection will allow it to survive until Chinese authorities approve a $336 million investment by Zhejiang Youngman and Pangda.

Separately, Saab said that it has launched an “efficiency improvement initiative” 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.

“During the coming weeks, Saab Automobile will identify areas throughout the whole organization where efficiencies can be gained,” Saab said in a statement. “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.”

– By: Omar Rana