It's entirely possible that SAAB will be the subject of an involuntary bankruptcy.
And if that happens, do you think creditors will get paid more, faster, or less, slower?
My intuition is that creditors who use a threat of involuntary bankruptcy play a dangerous game.
Here in the United States, it's a threat that is seldom-used, because it's...dumb. If a debtor is forced into such an involuntary bankruptcy, the least that happens is that the mind-set of the debtor changes.
Take SAAB, for instance.
Right now SAAB wants to pay its creditors.
That's not easy when it doesn't have all the parts it needs to build cars, of course.
But once it becomes the subject of a reorganization, it may change its plans, because now it has the tools to work with, and the worst that could happen did happen!
And if SAAB believes that it will be the subject of an involuntary bankruptcy in a venue it doesn't like, do you think it'll look around for a debtor-friendly venue and a DIP financing package?
And do you think that irritating creditor will get paid last and least, if SAAB can manage it?
Just a thought.
