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Spyker Files for Voluntary Financial Restructuring

Motor Trend logo Motor Trend 12/3/2014 Megan Stewart

After the Saab debacle, Spyker has faced financial challenges, but the automaker rallied and brought a concept vehicle last year to the Geneva Motor Show. But the optimism the brand showed at that event seems to be fading. This week, the company filed for financial restructuring to address short-term operational and liquidity challenges, the rough equivalent of American Chapter 11 proceedings.

"After careful consideration of all available alternatives, the Company's Directors and Management Boards determined that a voluntary petition for temporary moratorium of payment was a necessary and prudent step and the best way to secure and use the financing necessary to maintain operations and allow for a successful restructuring of the company," said Victor R. Muller, Spyker founder and CEO, in a recent press release.

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While Spyker has only now sought out a moratorium, the company's subsidiary, Spyker Events & Branding B.V. entered a temporary moratorium of payment last month. Key operations will continue during this process, giving the restructuring time to take effect.

But the automaker isn't stopping with just a payment moratorium. Spyker is also seeking a loan facility from independent financiers to help immediately fund the company and meet customary obligations associated with business operations, including employee salaries. The company hopes that the moratorium and potential loan will not only help in the day-to-day, but also save jobs and maximize its recovery for all stakeholders.

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In 2012, Spyker was blocked by GM from partnering with a Chinese automaker to save Saab, the brand it purchased from General Motors in 2010. GM exercised its right to veto the deal because it didn't want its technology falling into Chinese automakers' hands. In the wake of that move, Spyker had to scramble to find other investors, but ultimately Saab was sold in pieces to a Chinese company with plans to revive the brand as an all-electric company. Earlier this year, however, that company too went bankrupt and lost the right to use the Saab name. Spyker sued GM for $3 billion in damages following the initial partnership failure, but the suit was thrown out. It's unclear what the troubled Dutch sports car maker plans to do after it restructures, but don't expect to see the B6 Venator concept from last year's Geneva show make it to production anytime soon.

Source: Spyker

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