UPDATE: Creditors Approve Saab's Debt Settlement Plan
17 Juni 2009 - 1:13PM
Dow Jones News
Saab Automobile AB's creditors Wednesday approved the
automaker's proposal for settling its debts by paying 25% of what
was owed.
Court secretary Ingrid Lund at Vanersborg District Court in
Sweden, which is handling the case, told Dow Jones Newswires that
all creditors apart from the Swedish Tax Agency had approved the
plan.
She said the proposal thereby had gained approval from more than
75% of the creditors and of creditors representing at least 75% of
the total debt, as required.
Saab previously proposed to settle its debts by paying 25% of
around 10.5 billion Swedish kronor ($1.34 billion) owed to more
than 600 creditors, including auto suppliers and the Swedish
government.
The vast majority of the debt, almost SEK10 billion, was owed to
General Motors Corp. (GMGMQ), which Tuesday said it has agreed to
sell Saab to Swedish supercar maker Koenigsegg Group AB for an
undisclosed sum.
"Writing down the debt has always been part of the plans" to
attract a buyer for the car maker, Saab spokeswoman Gunilla Gustavs
said Tuesday.
GM's agreement to write off 75% of Saab's debt implies a
reduction of around SEK7.5 billion that would otherwise have been
assumed by the buyer.
Saab had expected the accord plan to be approved since GM, which
supported the proposal, held over 90% of its debt and since the
company had gained approval from over 80% of the creditors ahead of
Wednesday's decision.
The Swedish automaker, which entered bankruptcy protection in
February, had asked creditors to support its proposal, arguing that
they would likely end up receiving at most 15% of what they were
owed if Saab was forced into bankruptcy.
GM itself filed for protection from its creditors earlier this
month.
Company Web site: www.saab.com
-By Gustav Sandstrom, Dow Jones Newswires; +46-5451-3099;
gustav.sandstrom@dowjones.com