Saab Gets New Lease on Life; Swedish Court Approves Reorganization Plan

Props must seriously be given to Saab's management team. They have pulled off an extraordinary feat, dodging so many bullets we can't even count. They seem to always secure the right partnership for the right time, just enough to get them scraping by. It seemed the time of reckoning had finally come though. Saab wanted to reorganize itself and get back wages paid by the Swedish government.

The latest two deals, with Chinese companies Pang Da and Youngman Automotive, were originally said to secure their financial future. They didn't include short-term funding however.

In order to get wages paid by the Swedish government and complete some "reorganization" until long-term financing kicked in, Saab applied for protection from the government. The Vanersborg District court rejected the request, dimming hopes for that prospect. However, Saab appealed the decision and the Gothenburg Court of Appeal reversed the prior ruling. That means the court has deemed Saab's future plans as viable.

Given the approval, wages will be paid and production will restart while Saab aims to streamline its operations. Saab says it has already began the preparations for these things, going into 2012 and beyond. Under the Swedish Company Reorganization Act, Saab has three months to get its act together, but it can request additional time. What a drama! There has to be some kind of future documentary created here with these cast of characters, whether Saab ends up successful or not. Hopefully this is the end of the drama though and there can finally be some stability brought to the company.

We've thought that so many times before though so we're prepared. The question is whether the damage to the Saab brand is irreparable. Certainly to most mainstream customers it is. Although, most weren't likely to ever consider Saab anyway. Meanwhile, Chief Executive Officer Victor Mueller deserves a gold medal or something for this show of corporate acrobatics.