U.S. Unit of Saab Will Try to Avoid Bankruptcy

Tim Colbeck, president of Saab Cars North America, said the unit has hired consultants to block creditors from forcing the company into filing for bankruptcy protection while it sorts out what can be done with remaining assets.

The North American unit of bankrupt Swedish automaker Saab will try to avoid going into bankruptcy itself to keep up warranties for recent car buyers and support dealers left with inventory, a company official said Wednesday.

Tim Colbeck, president of Saab Cars North America, based outside of Detroit, said in a telephone interview that the unit has hired consultants to block creditors from forcing the company into filing for bankruptcy protection while it sorts out what can be done with remaining assets.

"We hope to avoid filing for bankruptcy," he said.

The consultants, McTevia & Associates, will sort out and organize the claims SCNA is facing and figure out an equitable way to deal with them, Colbeck said.

He declined to say what kind of assets there were, but he said SCNA hopes to reinstate the warranties of car owners who bought Saabs before 2010 while it was still controlled by General Motors.

Colbeck said SCNA has been overwhelmed with calls and messages from Saab owners who are in despair over the company's shutdown.

Copyright Agence France-Presse, 2011

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish