Last Friday, a group of 41 Saab U.S. dealers threatened to file a Chapter 7 for involuntary liquidation. Now, the dealer’s legal representation has asked a U.S. Bankruptcy Court in Wilmington, Delaware for Chapter 11 bankruptcy protection for Saab Cars North America.

“We filed a [Chapter] 11 just in case a white knight comes out of nowhere and buys Saab’s parent” and would want to reorganize the North American operations, said Leonard Bellavia, the lawyer representing 162 of Saab’s 188 U.S. dealers.

This petition is for claims on unpaid warranty, incentive reimbursement, and additional obligations listed by individual dealers for amounts starting at $79.11 up to $167,977.98.

Operations were suspended by Saab Cars North America on December 19th, the same day Saab Automobile AB filed for liquidation in a Swedish bankruptcy court. McTevia & Associates were given control of the assets on a day-to-day basis and the task of managing overall U.S. operations.

President of the Saab Dealer Council Kurt Schrim says this move was in the dealer’s best interests. He says the filing bankruptcy attorney “seldom sees these third-party administration situations work out because they just don’t have enforceability… enforceability that a court would. There is no one dictating or mandating the decision, it is all one open-ended negotiation. You could also wind up in a situation where you have multiple lawsuits filed in different courts for different reasons in different jurisdictions as opposed to having a single venue.”

Another motivation for filing the petition now is the concern that Saab would file for bankruptcy any day, so dealers acted quickly to avoid any complications.

Saab Cars North America COO Tim Colbeck says that “Overall, within the scope of what we have been doing, we anticipated that it was something that could happen.”

- By: Alexandra Koken

Source: AutoNews

I don’t doubt that many of you who see Saab’s name in any title or headline, are fed up with hearing about the constant struggle to save the brand from being liquidated after declaring bankruptcy in December. Well, sorry to disappoint, but there’s been a recent update that Zhejiang Youngman Lotus Automobile in China is apparently gearing up to make a bid on the failed Swedish car brand.

Just as a quick refresher and to inform those outside of the Saab loop, because General Motors has owned and virtually engineered every Saab for the last two or so decades, the big Detroit make refused to let their technology and engineering get into the hands of the Youngman group. As a result, the aforementioned struggle.

Despite these roadblocks, the Chinese automobile conglomerate apparently still expresses strong interest in the brand, enough to say that they’re ready to bid whenever they get the chance to, which apparently could be as soon as next week.

- By: Chris Chin

Source: AutoNews

Though it might not affect the average person at all, quirky car enthusiasts everywhere will be lamenting this: Spyker may have just bought the farm. Due to Saab’s recent bankruptcy, parent company Swedish Automotive NV (Swan) is considering dissolving Spyker after Swan’s three chairpeople resigned over a funding conflict.

Swan’s CEO Victor Muller apparently disagreed with his fellow board members and this is the result. Currently the holder of a single priority share in Swan believed to be Vladimir Autonov is eligible to choose the replacement board members.

Swan began negotiations to sell Spyker for $41 million last September, but now says that this is not enough to keep Swan alive, therefore if they do not find additional funding, Spyker will go down the tubes in a (forgive me) Saabing Swan dive.

- By: Sawyer Sutton

As Saab continues its bankruptcy process, Chinese car company Zhejiang Youngman Lotus Automobile is trying to salvage parts of the bankrupt brand. The news comes as Saab owner Swedish Automobile’s CEO Victor Muller says that the year-long strife of trying to save the brand may not be over.

Youngman’s original bid to purchase Saab was blocked by General Motors. The company said that it is still interested in a deal even after Saab declared bankruptcy.

“I feel as if the discussions and plans that took place between the Saab management and Youngman may well be realized even at this stage, but excluding the technology that GM provides,” lawyer Johan Nylen, acting as Youngman’s representative in Sweden, said in an interview with Reuters.

Nylen said that Youngman is interested in the brand’s Phoenix platform, which was supposed to underpin the next-generation of Saab cars.

There may still be some hope Saab fans. Keep your fingers crossed.

- By: Omar Rana

Source: AutoNews

Some Saab owners will be getting a bit of relief from General Motors as they announced that despite previous statements that new-car warranties would be suspended with the automaker’s bankruptcy, they will be covering some vehicles throughout the proceeding.

“If Saab can’t cover warranties, we will provide warranty reimbursement for Saab cars built while GM owned the brand,” says GM spokesman Jim Cain. This includes mostly cars built prior to January 1, 2010 and Saab 9-3 models, and excludes redesigned 9-5 and 9-4x models.

The way Saab handled it is to list the owners still covered under their warranties as creditors to be offered coverage with funds from the sales of the brand’s assets. Saab does not have any control over its funds while its case is still in the hands of the Dutch bankruptcy court.

For Saab owners and potential buyers, parts are also still available, but purchases on post 2009 models are ill-advised.

- By: Alexandra Koken

Source: Consumer Reports

Effective Dec. 19, “warranty coverage is suspended indefinitely for all new Saab vehicles sold. During this period, the warranty booklet must be removed from the owner information packet,” Saab Cars North America said in a statement. ”For any vehicle sold or leased during this period, the customer should be affirmatively advised that the vehicle does not carry any warranty coverage and is sold ‘as is.’”

2011 Saab vehicle were covered by a 4-year 50,000 mile warranty that included roadside assistance, and no charge scheduled maintenance for three years or 36,000 miles. That no longer works.

Saab also said it has suspended the processing and payment of all claims, including:

• New-car warranties
• Powertrain warranties
• Emission warranties
• Parts warranty
• Safety belts, airbags
• Towing
• Recalls and campaigns
• Certified pre-owned coverage
• Goodwill
• No charge maintenance

- By: Omar Rana

Source: Automotive News

After many (and we mean many) attempts on saving Saab from bankruptcy, owner Swedish Automobile N.V. (Swan) has just announced that Saab Automobile AB, Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vanersborg, Sweden this morning.

“After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded,” Swan said in a statement. “The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.”

Swan said that it does not expect to realize any value from its shares in Saab. It will write off its interest in Saab completely.

Goodbye Saab – it was nice knowing you.

- By: Omar Rana

It seems like there may be still some life left inside Saab. The Swedish automaker has apparently received the first payment from China’s Zhejiang Youngman Lotus Automobile as the company struggles to stay in business.

“I can confirm a first payment from Youngman. Funding has come into Saab accounts,” Eric Geers, Saab spokesman, said today. He did not provide any figures.

Reports from Swedish business daily Dagens Industri report that Youngman issued a payment of $5 million to cover tax expenses. Youngman is expected to pay an extra $26.43 million to Saab tomorrow.

Saab faces a crucial court hearing about its future this week.

“Now, we are trying to work hard to pay salaries and to secure funding for salaries and keep the company in reorganization,” he said.

- By: Omar Rana

Source: AutoNews

It’s been a while since we updated you on the survival efforts of Saab – so we decided we’d give you a quick update today.

According to statement released by Swedish Automobile (the owners of Saab) today, the company is in “discussion with Zhejiang Youngman Lotus Automobile Co. Ltd. (Youngman) and a bank in China about an equity interest in Swan. The discussions include a short term solution to enable Saab Automobile to pay the November wages and continue reorganisation. The outcome of the discussions is still uncertain. Any possible transaction would be subject to the approval of the relevant stakeholders.”

GM sold the money-losing Saab to Swedish Automobile, known previously as Spyker Cars, in 2010 and still has preferential shares in the carmaker.

- By: Omar Rana

Saab’s ongoing financial issues still have no resolution in sight, as General Motors Co. announced Friday that it may block the sale of Saab Automobile AB to investors in China. The agreement that has already been made is with Pang Da Automobile Co and Zhejiang Youngman Lotus Automobile Co., for purchase of Saab for $140 million.

Saab has not made many models since the issues began in the beginning of the year, but with the courts keeping creditors at bay, the brand is still managing to restructure.

When GM filed for bankruptcy back in 2009, they dropped the Saab brand while retaining ownership of certain technologies vital to the brand’s line up.

“GM would not be able to support a change in the ownership of Saab which could negatively impact GM’s existing relationships in China or otherwise adversely affect GM’s interests worldwide,” said GM spokeswoman Renee Rashid-Merem.In addition to the technology, GM is also China’s biggest automaker, and used its plant in Mexico for 9-4X models.

In 2003, Saab had sold 49,000 units, which is now down to the 4,984 models sold through October this year.

- By: Alexandra Koken

Source: Detroit News

Swedish website, SVD Naringsliv, seems to have sourced a sketch of the new Saab 9-3. What we have going on here is a bit of current 9-5 at the front, some old 99 towards the rear quarter panel and there is a teensy bit of Exige/Cayman going on at the back. In all, if this somewhat cryptic image is any good indication of things to come, we are looking at a shape reminiscent of the 99-900 (the decade or so before the big, and some say bad, GM takeover).

SVD Näringsliv also pulled up a presentation given to the European Investment Bank in 2010. Saab’s recent recovery will pop up tangibly in early 2012, which may mean big-time Chinese expansion (think more Saabs sold in China, rather than more Saabs made in China). As for the new 9-3, it should show up a year or two from now as a ‘vert and as a fastback.

Along with the 9-3 will be the 9-4x, the 9-5 wagon and a compact not-so-economy car, potentially with the 9-1 moniker.

As part of the restructuring, purchasing companies Youngman and Pang Da have agreed to pay 50m Euros to fund the company during what is a necessary restructuring process to avoid bankruptcy.

Pending PRC government approval (expected somewhere in the middle of November), Saab seems to be heading back towards its roots, it’s just that the owners are not Swedish this time around.

- By: Sawyer Sutton

Source: AutoCar

I honestly don’t want to hear about Saab’s survival issues anymore but there are some of you out there that still may care – so we’re bringing you this latest update.

But first – a recap of recent headlines:

• China’s Pang Da, Youngman offer to takeover Saab, Swedish Automobile turns down offer
• Saab terminates agreement with China’s Pang Da and Youngman
• Report: Swedish Automobile in final talks to save struggling Saab

“Final agreement between the parties is subject to a definitive share purchase agreement between Swan, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan’s shareholders and certain other parties,” Saab said. “The consideration of EUR 100 million will be paid in instalments. An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.”

The MOU is valid until Nov. 15.

- By: Omar Rana

Swedish Automobile, the owner of Saab, said today that it is in am “intense final negotiations” with investors on how to secure financing that could help keep the carmaker alive.

“The final result of these negotiations, which can come more or less anytime, are conclusive for Saab’s ability to take a stance on the question that the court has asked Saab to comment on,” Saab said in the court document. “Thus, Saab cannot, until the result is known, make any remarks.”

Apparently, Saab has realized that reorganization will cost a lot of money and the administrator in charge of the reorganization said that he sent an application to Swedish court to end the process.

“The money is not enough to continue the reorganization,” Guy Lofalk told Reuters last week. Lofalk said $70 million promised by U.S. private equity company North Street Capital on last week for Saab was far from enough to continue reorganization.

Saab ended its investment agreement with China’s Pang Da and Youngman earlier this week.

- By: Omar Rana

Source: Automotive News

Almost every other day, we get a little email from Swedish Automobile (Swan) in our inbox giving us an update about Saab’s survival. Yesterday, the company announced that it has terminated its memorandum of understanding with China’s Pang Da and Youngman – effective immediately.

“Swan took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB (‘Saab Automobile’) while in reorganization under Swedish law,” the company said in a a statement.

But the relationship between the Swedish and Chinese companies isn’t over just yet. Swan said that Pang Da and Youngman have presented an offer of buying 100 percent of Saab, which Swan says is totally unacceptable.

“However, discussions between the parties are ongoing,” the company said.

- By: Omar Rana

China’s Zhejiang Youngman Lotus Automobile Co and Pang Da Automobile Trade Co, two companies that have signed a non-binding memorandum of understanding to take a 53.9 percent stake in Swedish Automobile, have offered to takeover Saab completely.

Swedish Automobile said that the two Chinese companies have made an offer to directly purchase shares in Saab. The company declined the offer and asked Youngman and Pang Da to confirm that they want to fulfill the original agreement.

“That confirmation has not been received to date. Further discussions are ongoing,” it said in a statement.

“The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab,” Swedish Automobile CEO Victor Muller said.

He said that if the two companies walked away from the original understanding, he has a plan B in place.

- By: Omar Rana

Source: Automotive News

Saab just seems to keep fighting its inevitable death. The company announced today that private-equity executive and racecar fan Alex Mascioli is pumping $70 million into the brand as it struggles to stay afloat.

North Street Capital, Mascioli’s firm, is purchasing $10 million shares of Swedish Automobile and is also giving a $60 million loan to pay for Saab’s reorganization.

In September, North Street Capital made a deal to buy Spyker sports car business from Swedish Automobile for $44 million.

Saab is still waiting on the Chinese government to approve investments of $338 million by Zhejiang Youngman Lotus Automobile Co. and Pang Da.

- By: Omar Rana

Source: AutoWeek

Ambitious automaker Saab has been in hot water for some time, and just before declaring bankruptcy, the brand received relief.

Youngman has agreed to loan Saab Automobile funding for its reorganization project, and provided the brand with its first payment of roughly $15 million on September 12. The remainder of the funds should be released by October 22. The total bridge loan of around $97 million is being provided, pending an approval from the Chinese and Swedish authorities on an approximately $338 million investment sum from Youngman and Pang Da.

- By: Alexandra Koken

Following reports that a deal with Chinese investors has fallen through and that the company is headed for bankruptcy, Saab today released this statement:

Swedish Automobile N.V. (Swan) and Pang Da Automobile Trade Co., Ltd (Pang Da) have taken notice of media reports questioning the validity of the partnership agreements between Swan, Saab Automobile AB (Saab Automobile) and Pang Da after Saab Automobile entered into voluntary reorganization. Swan, Saab Automobile and Pang Da underline that these reports are based on a misunderstanding.

So relax – Saab isn’t going anywhere… for now.

- By: Roman Bronfenbrener