AM Online

Saab files for bankruptcy protection

Swedish carmaker Saab has today filed with a local court for bankruptcy protection through a "voluntary reorganisation" while it continues to wait for promised new investments from two Chinese firms.

Saab, rescued from closure by General Motors in early 2010 by Amsterdam-listed Spyker Cars, later renamed Swedish Automobile, has struggled for several months while it pursues funding from an assortment of Chinese and other investors.

Production at its Swedish plant has been at an almost continuous standstill since April as suppliers refused to provide parts until they received payment.

The company also failed to pay salaries in August.

"The eventual purpose of the proposed voluntary reorganisation process is to secure short-term stability while sumultaneously attracting additional funding, pending the inflow of the equity contributions of Pang Da and Youngman," Swedish Automobile said in a statement.

Trading in Swedish Automobile's shares has been suspended.

Swedish Automobile said that under the filing for voluntary reorganisation Saab Automobile AB and two subsidiaries were asking the Swedish court to appoint an administrator with whom management would work to reorganise the company.

Saab said it will present the reorganisation plan to creditors within three weeks of filing the reorganisation plan.

It entered this same process in 2009 after GM pulled its funding and it exited later that year.

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