Report: Saab North America hires administrator but won't file bankruptcy

Filed under: Government/Legal, Saab

Saab has filed for bankruptcy in Sweden, which is likely to be a death knell for the storied automaker. But just because headquarters has filed doesn't mean that Saab North America will follow suit.

The Detroit News reports that Saab has hired Michigan firm McTevia & Associates to deal with creditors, and that there are no immediate plans to file for bankruptcy. Saab president Tim Colbeck reportedly acknowledged to DetNews that the company doesn't have much hope of staying out of liquidation, but added the best chance for survival is a company purchasing Saab out of bankruptcy. On the flip side, even though Saab NA feels that it is cheaper and easier to stay out of bankruptcy court, Colbeck adds that creditors could eventually force the company into bankruptcy.

McTevia chief Jim McTevia tells The Detroit News that the hope is that Saab NA will continue operating long enough for another company to come in and purchase Saab. Saab NA has 188 dealers, and there are 2,400 vehicles still sitting on dealer lots. Saab also employs about 50 employees in Royal Oak, MI.

Saab North America hires administrator but won't file bankruptcy originally appeared on Autoblog on Fri, 23 Dec 2011 09:03:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2011/12/23/saab-north-america-hires-administrator-but-wont-file-bankruptcy/

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