Sweden’s Saab files for bankruptcy protection
Wednesday, September 7, 2011
STOCKHOLM (AP) — Swedish car maker Saab is filing for bankruptcy protection in a self-managed reconstruction process.
Saab’s owner Swedish Automobile, says the Trollhattan-based Saab and its subsidiaries, are filing for a “voluntary reorganization” at Vanersborg District Court on Wednesday.
It cites Saab’s limited funds and says the move “is to secure short-term stability while simultaneously attracting additional funding.”
The brand has been plagued by production stoppages and problems to pay its suppliers and 3,700 staff for months.
Creditors have threatened to put it into bankruptcy unless it pays up.
Netherlands-based Swedish Automobile brought Saab out of a liquidation process by buying it from General Motors Co. in 2010.