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Saab Cars North America receives OK of parts inventory sale procedures
By Caroline Salls
Pittsburgh, May 15 - Saab Cars North America, Inc. received court approval of the bid procedures for the sale of substantially all of its parts inventory, according a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.
Saab said it maintained "a substantial inventory of parts and accessories" in an Allentown, Pa., warehouse operated by Caterpillar Logistics Services LLC. The company pays Caterpillar $350,000 a month to oversee the warehousing, sale and shipment of parts.
North American Distribution Services, Inc., a newly formed U.S. affiliate of Saab Parts AB, is the stalking horse bidder and hopes to replace the company as the distributor of parts and accessories, according to court documents.
Saab and North American Distribution Services executed a purchase agreement that calls for payment in cash for fast moving stock at 70% of Saab's invoice cost, slow moving stock at 40% of Saab's invoice cost and dead stock at 10% of Saab's invoice cost.
Based on the parts inventory level projected for May 31, the purchase price is estimated at $2.47 million, the motion said.
The stalking horse bidder is entitled to an expense reimbursement fee if it is not the high bidder.
Bids must be accompanied by a $25,000 deposit and be at least $100,000 more than the total of the stalking horse bid and the expense reimbursement.
Bids are due by 5 p.m. ET on May 24. The auction and sale hearing are scheduled for May 29.
Saab AB is a Trollhattan, Sweden-based car manufacturer. Subsidiary Saab Cars North America is based in Royal Oak, Mich. An involuntary bankruptcy case was filed against Saab Cars North America on Jan. 30. Its Chapter 11 case number is 12-10344.
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