Saab Automobile’s court-administered protection from creditors may end as soon as today, reviving a threat of insolvency for the cash-starved Swedish carmaker, a person familiar with the situation said.
Guy Lofalk, the court-appointed attorney overseeing the reorganization, may end the creditor-protection process unless the Trollhaettan, Sweden-based company receives a 70 million-euro ($95.6 million) bridge loan from China’s Zhejiang Youngman Lotus Automobile via Deutsche Bank AG, said the person, who declined to be identified as the plans aren’t public.
Without that funding, which Saab had planned on receiving last month, Lofalk is likely to take the view that the reorganization won’t work as the manufacturer lacks cash to pay for immediate expenses, the person said.
Saab staved off bankruptcy on Sept. 21, when a Swedish appeals court overturned a lower court’s ruling and gave the company a chance to reorganize. Saab, which General Motors Co. sold last year, first halted production in March after suppliers stopped delivering parts because they hadn’t been paid.
Geronzi Indicted on Charges Connected to Parmalat’s Collapse
Former Capitalia SpA Chairman Cesare Geronzi must stand trial on charges of fraudulent bankruptcy and extortion in connection with Parmalat SpA’s collapse.
Ennio Amodio, Geronzi’s lawyer, said the indictment violates the banker’s rights because he faced similar charges in the bankruptcy case of foodmaker Cirio Finanziaria SpA. Amodio, speaking in a telephone interview, said his client hadn’t committed any wrongdoing.
Prosecutors are investigating the role played by Geronzi in Parmalat’s purchase of dairy company Eurolat from Cirio. In July a judge sentenced him to a four-year jail term for his role in the bankruptcy of Cirio. Geronzi appealed the sentence.
Max Bank Tests Danish Consolidation Bill as Bail-In Shelved
Max Bank A/S became Denmark’s first insolvent lender to test a bank package designed to sidestep the country’s bail-in laws after the state was able to find a buyer and avert senior creditor losses.
Sparekassen Sjaelland A/S will take over the healthy parts of Max Bank after it was declared insolvent by the Financial Supervisory Authority, the government said Oct. 9. The state will assume the bank’s bad loans. Under the consolidation bill, the transaction will be subsidized by Denmark’s guarantee fund. Senior creditors will be spared, while shareholders will lose their investments.
The maneuver allows Max Bank to avoid Europe’s toughest bank resolution laws, which had led to senior bondholder losses twice since February. Those credit events left international funding markets closed to most of Denmark’s banks. Lawmakers last month passed the consolidation bill in an effort to avoid triggering more senior creditor losses and to help banks return to bond markets.
Penta Submits Offer for A-Tec’s ATB and Three Other Units
Penta Investments, a Czech private equity company, offered to buy units of the bankrupt Austrian engineering company, A-Tec Industries AG.
Penta “submitted an indicative offer” for three A-Tec units along with a separate offer for the insolvent company’s ATB AG division, Penta said in an e-mail Oct. 7.
Arise Places German Solar Manufacturing Unit Into Insolvency
Arise Technologies Corp., a Canadian solar company, placed its German manufacturing unit into structured insolvency.
The company’s Arise Technologies Deutschland GmbH unit wasn’t able to arrange financing to expand and upgrade its manufacturing process, and it’s “not considered feasible” for the business to continue operations, Waterloo, Ontario-based Arise said today in a statement.