Saab GB administrators Howes Percival has removed the 14-day debt recovery deadline for former dealers of the Swedish brand.

The administrators had threatened a number of Saab dealers with litigation and MILS, the car dealer specialist solicitor, described the approach as being “heavy handed”.

Howes Percival will still be pursuing dealers to recover debts but is now prepared to deal with cases in “a conciliatory manner and on a case by case basis”.

MILS represents over 25% of former Saab dealers and is currently providing legal defence against the claims from the administrators.

Adam Cox, managing director of MILS, said: "In such cases, the dealer may be able to offset money owed to them by Saab GB against money owed by the manufacturer.

"This same argument can be used in relation to debts such as liabilities for the manufacturer’s warranty.

"There also appears to be a serious issue regarding vehicles purchased on a sale or return basis from Saab GB.

"In some cases, Saab are delaying payment or refusing to buy back these vehicles in the last few months of trading. In such circumstances, franchisees may be able to claim for the difference between the return value and that realised by the vehicle at sale, and still claim the bonus achieved."