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Saab files for creditor protection

Saab has filed for reorganisation, the Swedish equivalent of going into Chapter 11 bankruptcy protection.

Bosses at the Swedish brand discussed the future of the company last night following the Swedish government’s refusal to inject state aid.

Saab managing director Jan Ake Jonsson said reorganisation was the best way to prepare the business to become an independent entity ready for investment.

Saab said funding for the restructured company would need to be secured during the three-month reorganisation process and would be sought from both public and private sources.

During that period, the company is not allowed to pay off any debts accumulated before the reorganisation was declared.

Johnsson said: “With the new 9-5, 9-3X and 9-4X all ready for launch over the next year and a half, Saab has an excellent foundation for strong growth, assuming we can get the funding to complete engineering, tooling and manage launch costs.

"Reorganisation will give us the time and means that help get these products to market while minimising the liquidity impact of Saab on GM.” 

Saab said the reorganisation should have no impact on other GM operations.

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