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Saab to file for bankruptcy: report

TT/The Local/dl · 12 Dec 2011, 22:29

Published: 12 Dec 2011 13:24 GMT+01:00
Updated: 12 Dec 2011 22:29 GMT+01:00

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Citing “several independent sources”, Swedish business daily Dagens Industri (DI) reported early on Monday that Saab's parent company Swedish Automobile (Swan) is expected to submit a bankruptcy petition on Monday afternoon to the Vännersborg District Court.

However, a “well-placed” source at Saab told the TT news agency that a decision about putting Saab in bankruptcy has yet to be taken.

Anette Hellgren, chair of the Saab chapter of the Unionen labour union, told TT she hadn't heard anything about the reported bankruptcy either.

“We haven't heard anything about this,” she said.

*Whether negotiations between Saab and Chinese firm Youngman have reached a conclusion also remains unclear.

“As far as I know they were still negotiating at the weekend in Stockhlm,” Thomas Haglund, chair of the Saab chapter of the white collar Ledarna labour union, told TT.

Haglund refused to comment on whether or not Saab had filed for bankruptcy, saying he preferred to “wait and see”.

“It's only a rumour,” he told TT.

Last Wednesday, Saab's appointed administrator Guy Lofalk asked the court to lift the bankruptcy protection that has keep creditors at bay for weeks, saying there is no money left to carry out a successful reorganization of the business.

Meanwhile Saab employees are still waiting to be paid for November.

Saab CEO Victor Muller responded by trying to stitch up a solution that wouldn't require approval of Saab's previous owner, US automaker General Motors (GM), which previously put a stop to the planned purchase of Saab by Chinese auto companies Pang Da and Youngman.

Muller has been negotiating with Youngman for a loan that would allow Saab to pay workers for November and continue with the reorganization.

According to a source at Saab, the Chinese have promised to provide the funds, but have yet to actually deliver the money.

Story continues below…

“The situation is extremely difficult, but there hasn't been a decision about bankruptcy,” the source told TT.

As of the close of business on Monday, the court had yet to receive any bankruptcy petition from Saab.

However, bankruptcy rumours forced a halt in trading for shares of Swedish Automobile on the Amsterdam stock exchange after the share price dropped by 20 percent.

TT/The Local/dl (news@thelocal.se)

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Your comments about this article

15:56 December 12, 2011 by vancer

ground hog day
18:00 December 12, 2011 by swedejane
Someone put this poor dog out of its misery. Shoot it in the head.
23:37 December 12, 2011 by J Jack
The automobile sector of Saab is only a part of the overall company .. I'm assuming that the trucks and aircraft sectors are under a different parent company .. right?
23:44 December 12, 2011 by Mike in London
As a Brit, Saab owner and all-things-swedish lover, i think it is a shame that Saab looks like it will collapse. We love Saabs in the UK and I think that here and elsewhere in the world, they are synonymous with quality, style, different thinking and Sweden in general. If it is lost, a little bit of Sweden will be lost to the world. It is like when Rover collapsed here some years ago. Nobody did anything then after it was gone, everyone missed and mourned it and said it should have been saved. It is people's lives and careers and businesses that are affected. Why is this being allowed to happen? Last week, Saab UK went into administration affecting all the main Saab dealers, but here there are hundreds of smaller Saab specialist businesses that offer great service and repairs. If Saab closes, the knock-on effect will be huge for thousands of people all over the world. I really hope is does not happen.
01:41 December 13, 2011 by millionmileman
The good news is that on Friday Chinese company Youngman (one of the takeover partners ) paid Saab 34 million Swedish kronor. This went towards National Insurance and taxes.
03:04 December 13, 2011 by Tanda Cano
GMC does it again. First they try to ruin theSAAB; they almost did and now want it to go away.

50 years ago, My first SAAB had the 3 cillinder DKW engine, and It was a fun car, strong, and fit my personality. My next was an 1986 900 turbo4 door. Again a nice strong good driving car. Our current is a 1999 9-3, very comfortable, civilized, GM product. Not my favorite SAAB. GM simply raped the SAAB for technology and then tried to badge-enginere an Opel. They called it a SAAB.

Currently they are queering the deal to finally kill off ther SAAB. GM hates competition.

Where can I find a 1955 Studebaker coupe. Tonda Cano
08:52 December 13, 2011 by Rick Methven
@Tanda Cano

Since 1994 with the introduction of the 'New' 900 SAAB cars went downhill screwed by GM. That last true SAAB was the 9000.

When GM bought 50% of SAAB they wanted to put their stamp on the brand and forced the change in the 900 which was just a high priced Opel with none of the refinement of the Classic 900. poor bodywork bad reliability in an attempt to give the brand a mass market appeal which failed. The 900 became the 9-3 and the 9000 became the 9-5.

Until it finally got too old and costly to run a year ago, I still preferred my 1993 9000 Aero to my 2005 9-5 Aero, the difference in quality was very noticeable.

When it came to replacing the 9000 I ended up buying a Citroen, the first car in 35 years that was not a SAAB.

I would like to think that SAAB can rise from the ashes and become the innovative brand that it was, unfortunately I fear that it will not.
19:02 December 15, 2011 by Escort

The truth is that most people who "love Saabs" wouldn't actually go out and buy one. Why? Because they now have a reputation as a brand to be avoided. They are outdated, overpriced and quality/reliability lags behind key rivals. Exactly the same as Rover in the years leading up to their demise. Both great brands in their heyday, followed by years of slow decline leading to the inevitable. With so much talented competition, failing manufacturers can no longer get away with trying to flog uncompetitive product.
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