Saab Gets Debt Writedown

Things are beginning to get back on track for Swedish manufacturer Saab, after months and months of uncertainty. Following yesterday's announcement that Koenigsegg will buy the company, Saab managed today to secure a court ruling which will cut billion of Swedish crowns in debt, Reuters reported.

To put this in numbers, the respective court has approved the writedown of 75 percent of its 10 billion crowns ($1.4 billion) debt. The ruling came, of course, after most Saab creditors have agreed with the debt cut.

Strangely enough, the only one to oppose the writedown was the Swedish state. Its representative to the court said the country opposes such a measure due to the (still) uncertain future of the manufacturer. The court dismissed the state's argument, allowing Saab's debt to be cut.

The debt cut court approval was required due to the fact that Saab is under the Swedish version of Chapter 11 since February. Most of the company's debt was owed to its still current mother company, GM.

As we already told you, another Swedish manufacturer, namely Koenigsegg, will take over Saab. To that end, Koenigsegg, supported by the Eker Group, Koenigsegg's largest shareholder, will form a new company to complete the Saab purchase, which will wear the Koenigsegg Group name.

The proposed agreement will enable us to maximize the brand’s potential through an exciting new product line-up with a distinctly Swedish character. Today’s announcement is great news for Saab’s current and future customers, dealers, suppliers and employees around the globe," Jan Åke Jonsson, Saab's CEO said upon announcing the sale.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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