As the day in question is tomorrow and there are still a few headlines going around about this, I thought it wise to bring it back to the top of the page.

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Despite the sound of the headline, this is not a press release.

The purpose of this posting is two-fold: to talk of the delay in the submission to creditors that was planned for November 22, and to clarify what was going to happen on that date.

As has been mentioned in the media already, Saab/Swan and Guy Lofalk have taken a decision to delay submitting their composition proposal to creditors. According to the time plan mentioned at the Creditors Meeting on October 31, this proposal was due to be submitted on November 22. As with much of what’s happening as part of this process, however, that date on that October plan was a preliminary date, and subject to change depending on the prevailing circumstances.

Right now, the prevailing circumstances include ongoing negotiations with our partners and stakeholders. We submitted a purchase proposal to General Motors, which they rejected. We are now negotiating a proposal with a view to getting an outcome that will be acceptable to all parties and it was held that the November 22 submission should be delayed in order to facilitate those ongoing negotiations.

There’s been a fair bit of anxiety over the November 22 date and what it might entail for Saab. It has been described in some reports as another Creditors Meeting, which implies a decision point in the process. This is not actually the case.

What was actually due to happen was the submission of what is referred to as a composition proposal. This is a proposal sent to creditors by Saab for their consideration, one that specifies how Saab intends to pay back outstanding debts, as well as a proposal on future payment and delivery terms. Our creditors and suppliers have been notified about this delay by Saab’s purchasing department as part of our ongoing conversation with stakeholders.

There is no replacement date for November 22 at this stage, but obviously everyone concerned would like to get this process moving as soon as possible. We also have to get it right, however, and the first crucial step in getting it done right is to get a purchase proposal together that all parties can approve, which is what we’re working on right now.

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There might be some uncertainty as to what that will mean for Saab today. In short, whilst the MoU does indeed expire, all parties to that deal have agreed to continue talks.

General Motors, who must approve any sale of Saab under certain conditions, indicated that they would not accept a sale of Saab Automobile as per the terms of the MoU. Therefore the parties involved are negotiating to determine conditions that GM will accept.

As has been previously reported in the media, information has been sent to GM outlining Saab’s proposed business plan and intentions for the future, as background information for any further change-of-ownership proposals put before them.

I just wanted to quickly refer back to something that I wrote last week in a post called Waiting.

There’s no reason why Saab Automobile has to succumb to the circumstances that have plagued it this year. As I mentioned a few days ago, Ford managed to get a similar deal done to give Volvo a future. I think it can be done here, too. We still have a lot of very good reasons to be here in this industry. If there is goodwill in the room, there will be a way to work this out with an agreement that will work for all concerned.

I’d now like to invite you to read the Editor-in-Chief of one of the most important newspapers in the automotive industry, Keith Crain from Automotive News:

….GM should look at how Ford handled the situation when it sold its Swedish company, Volvo. That seemed like a very civilized transfer, and Ford acted gentlemanly the whole time. That might be something GM should study.

I’m not playing favorites. But if Saab is to die, it should happen in the marketplace, not in some corporate boardroom without even a fair hearing.

We have no plans that include dying. We just want to bring our new vehicles to market and knock a few people’s socks off.

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This week, Saab will have to try to extend its MoU with Chinese partners Youngman and Pang Da, as well as continuing negotiations with General Motors about what will constitute an acceptable deal in their eyes.

There is an important deadline looming with regard to our reconstruction procedure (on the 22nd), so time is precious.

As written above, I hope there is plenty of goodwill in the room. There has to be a way to work this out.

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Reuters:

China’s Zhejiang Youngman Lotus Automobile Co said it still wanted to invest in ailing car maker Saab after General Motors said on Monday it would stop supplying components and technology if Pang Da Automobile and Youngman succeeded with their acquisition bid.

Youngman director Rachel Pang said on Wednesday the company will do “everything they can” to support Saab’s survival. She told Swedish news agency TT Youngman still wants to buy Saab.

“Of course we do. If you are afraid you cannot succeed in business. There are always difficulties. One has to find solutions, not just give up,” she was quoted by TT as saying.

And the Wall St Journal:

Saab Automobile AB said Wednesday that it is discussing a new ownership structure with its Chinese investors, trying to save plans of selling the cash-starved company after former owner General Motors Co. objected to the deal.

“The purpose of these discussions is to find an ownership structure that everyone can agree on,” said Saab Automobile spokesperson Gunilla Gustavs, noting that the proposed 100% Chinese ownership “was an issue for GM.” Ms. Gustavs didn’t provide further details of the discussions.

From an internal point of view here at Saab, we continue to pursue all of our current objectives, which include but aren’t limited to these discussions.

Since GM’s statement on Monday night, we continue to work with Youngman and Pang Da to prepare to respond to GM’s questions on the proposed sale transaction of Saab Automobile AB to Pang Da and Youngman.

The Saab management team is preparing an in-depth communication package that clarifies the new business plan and the intentions for the future. The purpose is to present this to GM and clarify the intentions with the operations in China, thus seeking GM’s consent for the transaction through discussion and negotiations.

In parallel, the other processes continue, both those regarding approvals and those referring to the reorganization. Project Cheetah goes on as well, with the aim to create a new cost structure for Saab next year.

We had a setback, but in the Saab tradition, we keep moving on toward the goal. If our recent dealer tours through Germany and Austria are anything to go by, then the product and the customers demand it.

STOCKHOLM (Dow Jones)–The former owner of troubled Swedish car maker Saab Automobile AB, General Motors Co. (GM), said Friday it would have a difficult time supporting a change in ownership of the company based on the information at hand.

“GM would not be able to support a change in the ownership of Saab which could negatively impact GM’s existing relationships in China or otherwise adversely affect GM’s interests worldwide,” said GM spokesman Jim Cain.

My brief thought as a Saab fan who’s followed this journey closely for nearly two years straight now:

Ford found a way to let Volvo keep going and protect its interests. So can you.

My hope for all the people on our side of the table….. Keep talking. Find a way. Never, ever give up.

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Something I just added in comments that I figured was appropriate to state here, as well:

GM have legitimate interests to protect. No-one’s arguing with that. But that doesn’t mean that those interests can’t be protected. Things can always be worked out where there’s an interest in doing so. I just hope GM have same view as the rest of us – the world is not a better place with Saab gone, and there’s no threat from Saab to their business.