Saab U.S. Liquidation Plan Approved

The long story of Saab’s bankruptcy is starting to come to an end as the Swedish automaker has gained court approval for a plan in the U.S. to liquidate in order to pay back creditors.

The U.S. Bankruptcy Court in Delaware signed off on Saab Cars North America Inc.’s plan to pay back its creditors and some portion of unsecured claims, while wiping out equity holders. Under the automaker’s liquidation plan, secured creditors will receive full payout.

As for unsecured claims, they are slated to earn between 25- to 82-percent recovery. Those claims total about $77 million so far, excluding contract rejection claims that are likely to be asserted by Saab’s U.S. dealers.

[Source: Reuters]

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