Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware in Wilmington is set to consider approval of the disclosure statement filed by the debtor and committee on Nov. 16.

However, secured creditor Ally Financial Inc. has asked the court to defer considering the joint disclosure statement until January to allow Ally to conduct discovery for it to propose what it believes will be a "competitive and more beneficial plan."

Saab and the committee filed their liquidation plan and its related disclosure statement on Oct. 17. Two days later, Ally objected to the disclosure statement, saying Saab and the committee employed "tactics ... to frustrate Ally's opportunity to meaningfully participate in the reorganization process, despite the fact that Ally is the largest creditor of the estate."

Ally said it notified Saab and the committee on Oct. 8 that it wanted to file a plan. Ally requested certain information and said it needed to examine certain insiders and affiliates. Ally also said it was open to negotiating a fully consensual plan.

However, on Oct. 12, the committee sent Ally a draft of the plan it and Saab intended to file. Ally asked for time to review the plan, but the parties ignored Ally's request and filed their plan.

Ally said the proposed plan is legally insufficient and doesn't provide mechanisms and safeguards necessary to maximize recoveries for creditors. Ally said it could propose a plan that would provide greater and more expedited distributions to creditors, while employing greater controls over the costs of the liquidation.

Under the joint plan, Ally's $18.5 million secured claim would be repaid from the liquidation of the collateral securing its claim. However, the committee has asserted that $13.5 million of the claim is contingent and the committee is conducting discovery to determine the validity of the claim.

Saab had originally asserted a $61 million claim, but the claim was actually owed by Saab Automobile AB and Saab Great Britain in Europe. Saab is only obligated to the debt to Ally under a guarantee.

Also under the plan, about $1.15 million in claims arising from U.S. Custom duties for importing vehicles would be paid in full.

General unsecured creditors, owed $77 million, would receive a pro-rata share of funds from a liquidating trust. The plan estimates general unsecured creditors could receive anywhere between 7% and 58.5% of their claims, depending on the success of certain causes of action and Saab's ability to subordinate intercompany claims.

Equity holders would be wiped out.

Administrative, $384,000 in priority tax and $125,000 in priority nontax claims would be paid in full on the plan's effective date.

Caterpillar Logistic Services LLC's $1.8 million secured claim would also be paid in full.

The joint plan would be funded by the liquidation of all of Saab's assets.

Ally has been selling Saab's 900 vehicles in the U.S. and has generated about $17.6 million in gross sale proceeds. About 26 vehicles remain unsold as of Oct. 17.

Sontchi had given Ally authority to liquidate Saab's remaining U.S. vehicles on March 23 despite objections from the debtor and some 165 Saab dealerships.

The vehicles were stuck at three U.S. ports after transportation to the dealerships was halted because of parent company Saab Automobile AB's bankruptcy filing in Sweden on Dec. 19.

Meanwhile, Saab has been liquidating other inventory, such as vehicle parts. Sontchi approved the procedures for the part sales on May 14. Saab then sold all of its leftover parts to North America Distribution Services Inc. for $2.85 million.

The court approved the sale on June 5.

Saab's bankruptcy was largely brought on by a dispute with Ally regarding the vehicles stuck at the U.S. ports. Documents show that Saab hoped to negotiate a settlement with Ally, but discussions broke down, leading Saab to notify the dealerships of its intention to seek court protection.

Some 41 Saab car dealerships then filed a Chapter 11 petition against Saab on Jan. 30. Thirty-nine other dealerships later joined the petition. Saab has 188 dealerships in the U.S.

The U.S. debtor, headquartered in Royal Oak, Mich., has been addressing its wind-down since its parent sought bankruptcy relief in Sweden. The company planned to file for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan in Detroit, but the dealerships chose to do so in Delaware before Saab Cars had the chance.

Saab moved the court to drive the case to Detroit, but Sontchi declined on Feb. 23. The following day, Sontchi granted Saab voluntary relief under Chapter 11.

Saab Automobile has 7 billion Swedish kronor ($1.1 billion) in debt, according to The Deal Pipeline.

Debtor counsel is Thomas B. Radom and Bruce L. Sendek of Butzel Long PC and Joseph H. Huston and Maria Aprile Sawczuk of Stevens & Lee PC.

Counsel to the committee is Eric J. Snyder of Wilk Auslander LLP and Christopher A. Ward of Polsinelli Shughart PC.

Charles M. Tatelbaum of Hinshaw & Culbertson LLP and Scott T. Earle and James F. Harker of Cohen Seglias Pallas Greenhall & Furman PC represent Ally.