Saab given three more months to restructure

Saab given three more months to restructure
Saab Automobile has been granted an extra three months to restructure, a Swedish judge said Friday, as parent company General Motors looks to sell the loss-making unit.

Cecilia Tisell, the judge sitting on the case, said in an emailed statement that the court had agreed to give the Swedish automaker more time.

“The decision has been taken. The reorganization will be allowed to continue until August 20,” she wrote in a written response to questions.

Tisell did not cite the reasons behind the decision.

Saab asked the Vänersborg district court in southwestern Sweden for the extension on May 19 after first filing to reorganize in February this year.

Under the procedure, which is similar to Chapter 11 in the US, Saab will get protection from its creditors until August 20 as it prepares itself for new ownership.

However, Saab has previously said it is unlikely to need the whole three months to complete the process.

GM wants to sell loss-making Saab, based in Trollhättan, southwestern Sweden, in a bid to shore up its own badly damaged balance sheet and has appointed Germany’s Deutsche Bank to advise them on the sale.

Saab employs about 3,400 people in Sweden. Including suppliers, some 15,000 jobs in the country are believed to be at risk if the company were to disappear.

The Swedish automaker sold 93,000 cars worldwide in 2008, its website said.

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