Swedish Automobile has announced that Saab Automobile, Saab Automobile Tools, and Saab Powertrain has filed for bankruptcy with the district court in Vänersborg, Sweden.
One of the proposed Chinese investors, Youngman, informed Saab Automobile that General Motors objecting to the sale of the company - to whom it supplies technology and engines - meant that it could not continue funding for the reorganisation of Saab.
The board of Saab Automobile then decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the court will approve of the filing and appoint receivers for Saab Automobile today (December 19).
Parent company Swedish Automobile does not expect to realise any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.
Production at the car's Trollhättan factory has been on hold since April over disputes with component suppliers over unpaid bills, while emergency cash injections have been sought from potential investors to help keep the company running.
Saab GB, a subsidiary of Swedish Automobile, with rights to distribute Saab cars and parts in the UK, has been in administration since November 29.
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