Saab Files For Bankruptcy Protection

STOCKHOLM—Saab Automobile AB Wednesday filed for protection from its creditors, in a move that buys time for the Swedish car maker to secure additional short-term funding to restart production.

The filing, similar to a Chapter 11 filing in the U.S., wasn't unexpected. Labor unions representing employees at Saab Automobile who weren't paid last month were due Wednesday to consider forcing the company into bankruptcy proceedings so that workers could seek state unemployment benefits.

Saab would have to consider filing for bankruptcy if it isn't granted protection from its creditors, it said in its application to the district court in Vanersborg.

But Victor Muller, chairman of Saab Automobile and chief executive of parent Swedish Automobile NV, said it was too soon to speak about that. "It's not appropriate to discuss bankruptcy," he told reporters in Trollhattan.

Saab Automobile has struggled with its finances for months. Production at its plant in the Swedish town of Trollhattan has been halted since April.  continued....

CloseIn a bid to solve its long-term funding needs, the company this summer signed agreements with two Chinese com

Posted in automobile bankruptcy , Chapter 11 Bankruptcy , Saab bankruptcy