The Swedish car maker has been in the process of reorganization, but today the administrator has filed papers to terminate the process, which can throw the company into bankruptcy.
Guy Lofalk told Reuters, “The money is not enough to continue the reorganization.” The company recently received $70 million land promise from North Street Capital, but these funds are far from enough to continue with reorganization, according to Lofalk.
The company has said it will challenge Lofalk’s decision and apply for a new administrator, according to the Wall Street Journal.
Bankruptcy is complicated for any business whether they are large or small and require the diligence and expertise of a bankruptcy attorney.
Saab entered bankruptcy protection in September, giving it three months to solve their liquidity problems. They ceased production a year ago while they struggled to pay workers and suppliers.
The automaker's Chief Executive Officer Victor Meuller convinced a Swedish appeals court that Saab could land on its feet if creditors could be held at bay until regulatory approval goes through and they receive a cash injection from Chinese partners Pang Da and Youngman. The cash injection is anticipated to come in November.
Businesses facing failure have a number of options available to them according to their needs. When considering this move the advice of a bankruptcy lawyer is crucial to making a decision what routes to take.
A bankruptcy lawyer will assess the debts owed and determine which bankruptcy structure will be beneficial to their clients.
