A group of 41 Saab U.S. dealers today petitioned a U.S. Bankruptcy Court to put Saab Cars North America into involuntary Chapter 11 bankruptcy protection, Automotive News [sub] reports. Last Friday, the dealers had threatened to file a Chapter 7 for involuntary liquidation, but changed their minds. Leonard Bellavia, a lawyer representing most of Saab’s U.S. dealers, explains:
“We filed a Chapter 11 just in case a white knight comes out of nowhere and buys Saab`s parent.”
Dealers are being owed money for unpaid warranty, incentive reimbursement and sundry others. Per dealer, the sums are said to range from $79.11 to $167,977.98.
The Church of St. Victor has a different version. Under the headline “Saab US Dealers Ask For Chapter 11 Protection,” they write:
“Take this as a good sign, today 41 US dealers asked a judge for Chapter 11 protection which would allow them greater involvement in a liquidation and to preserve whatever structure they can in case a bid for the entire company is accepted.”
Fellow blogsters and spinmeisters: If you ask a judge for Chapter 11 protection, then it’s YOU who is hounded by creditors and collection agencies, and it’s you who wants protection. Which would be more than plausible with a lot full of cars nobody wants.
PS: After some of the flock complain, the church changes the headline “Saab US Dealers Ask For Chapter 11 Protection” to “Saab US Dealers Ask For SCNA Chapter 11 Protection.” Not a big improvement as long as the copy stays the same.