Saab NA Chapter 11: It's A Matter Of Perspective
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.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
More by Bertel Schmitt
Comments
Join the conversation
I'd LOVE to see an article on TTAC giving advice to current Saab owners. Something like: "If your car is still technically under warranty, then these are your options and these are the pros and cons and this is your best case scenario and if your car is no longer under warranty but you're relatively happy with it then this is what you can look for and if you're REALLY lucky then xyz and if you've been thinking about trading it in for something new then don't even bother because a scrap yard would give you more for it than you'd get on a dealer trade-in." HHmm?
Great idea mistermau! You should write it and submit it to the editors....
I want what they're smoking, if they suppose the white knight has only been sleeping for the past year and now might wake up. I'm curious as to how my local dealer disposed of almost all of his 30+ Saabs in a month's time.
Holy thread recovery Batman! The Church Of The One True Saab is claiming tonight that one of the seven bidders that receivers have on the table for what is left of the company is BMW. Can anyone come up with a confirmed source for this or as usual is this just another SaabsUnited "reliable source"? Like the one who guaranteed that Youngman were going to save Saab?... Or that North Street Capital were going to save Saab?... Or that the Bank Of China were going to save Saab?... Or that a major European High Street bank were going to save Saab? I'm guessing they just want the real estate and as usual the disciples of the One True Saab have jumped the gun.