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Saab's U.S. unit said today it entered what amounts to an out-of-court bankruptcy process that might keep Saab Cars North America alive long enough for an investor to buy the U.S. operation.
SCNA turned over control of the company to McTevia & Associates, financial adviser to troubled firms, just as a company would turn over control to a judge in bankruptcy court.
"We have been put in charge, in control of all the company's assets" in North America, founder Jim McTevia says -- and will work out SCNA's fate faster and cheaper than going though court.
The move changes nothing from the car-buyer's viewpoint. The approximately 3,000 new vehicles still in inventory have no warranty and are being sold "as-is," as if they were used cars. Saab won't pay for warranty repairs on cars bought after General Motors sold Saab in February of 2010. GM says it will cover warranty items on Saabs sold while it owned the Swedish automaker.
See earlier posts about the warranty issue and other matters starting here.
"All we're about is buying time and not hurting any of the parties during that process," says McTevia, longtime adviser to troubled companies.
"Everybody stands by, we asses the corporation, keep the company operating, pay current bills going forward, assess the value of the company's assets and liabilities," McTevia says.
Tim Colbeck, president of SCNA: "We had a couple of choices: We could follow (Saab AB, the Swedish parent company) into some type of protected bankruptcy or liquidation. The other choice is to do this out of court. We announced today that we have chosen an out-of-court solution. We have appointed a third-party independent administrator."
Colbeck says SCNA has desirable assets that could tempt a buyer: "We have a network of dealers and a large amount of finished products and supply of parts that are important to those who have purchased Saabs."
Is that enough?
McTevia: "I have seen things happen through my years doing this that have astounded me.Everybody said Jaguar was dead. Well, I drive a 2011 Jaguar, the L, the big one, the limousine, and it's a wonderful car. I think, 'How the hell could anyone have said Jaguar is dead?'"
Who would be interested in investing in Saab?
McTevia: "Even though we like to pretend that everybody's broke, there's been an enormous amount of money made in Wall Street and investments -- enormous amounts.
"Saab is sitting on an infrastructure, distribution infrastructure, that's worth a lot of money."
posted by 173.8.156...
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