Saab Denied Protection From Creditors by Swedish Court

Automotive News is reporting that Saab's attempt to protect itself from the €150 million that it owes creditors has been denied by the Swedish court. The company filed for protection yesterday to keep itself from being pushed into bankruptcy. Saab claims that it has incoming Chinese investments that will save the company. Saab plans to appeal the decision.

The Vanersborg district court said on its web site that it did not believe that protecting Saab from creditors would work, according to Automotive News.

Saab's problems are not just with creditors. Its 1,500 employees in the IF Metall workers' union have not been paid their wages since August. If Saab declares bankruptcy or had been granted protection from creditors a wage insurance program from the Swedish government would kick in paying the union's wages.

There had been several deals in place for Saab to be bought by a variety of Chinese car companies. In May a bid fell through from Hawtai Motor Group. A deal is awaiting approval by the Chinese government for Saab to be bought by Pangda Automobile Trade Co. Ltd and Zhejiang Youngman Lotus Automobile for €245 million.

Saab says that it will issue an update tomorrow with further developments.

Source: Automotive News