June 17, 2009

Saab creditors accept sharp write-off

Creditors in Sweden voted to accept 25 cents on the dollar for their Saab Automobile debt, vastly improving the bankrupt company's chances of being sold.

Creditors held more than $1.3 billion in Saab bonds, the Swedish news agency Tidningarnas Telegrambyra reported Wednesday.

The company, owned by General Motors Corp., filed for court protection in February. This week, a consortium led by niche automaker Koenigsegg signed a tentative agreement to buy the Saab. But the deal is contingent on the Koenigsegg Group finding $600 million in financing.

On Wednesday, Vanersborg District Court Chief Judge Cecilia Tisell approved the creditor vote with support for the write-off at higher than 80 percent among those who represented 93 percent of Saab's debtors.

Koenigsegg has said it has enough funds to go through with the deal to purchase Saab, but the government remained skeptical.

They say they have money. But we haven't received enough information to be able to make an objective judgment of the situation, said Mats Hagelin of the Swedish Tax Agency.