Industry News

Saab Hangs On A Bit Longer

Saab has won an important court case, but they have a long way to go before they're out of trouble.

The Vanersborg, Sweden District Court dealt what seemed to be the death blow to Saab, who have been struggling to stay afloat, when they denied them bankruptcy protection recently. That, it appeared, was that, but now an appeals court has given Saab a bit of breathing room by allowing them to undergo reorganization and theoretically return to profitability. This is, of course, a catch. Saab doesn't have the money to reorganize just yet.

Saab is still waiting for funding to come in from their new Chinese partners Pang Da and Zhejiang Youngman. This desperately needed cash, totaling $335 million, must be approved by the Chinese government before it can be handed over to Saab. Although the deal is not unprecedented, approval from the Chinese government is not a foregone conclusion. Although Saab's courtroom battle in Sweden has worked out in their favor, they aren't out of the woods yet.

Read Next

SEE MORE ARTICLES