Saab's main engineering union is waiting for a District Court in Sweden to pronounce on the automaker's application for voluntary reorganisation later today (7 September) before it decides whether or not to proceed with a bankruptcy claim.

The Swedish manufacturer took the dramatic step this morning as its exhaustive search for short-term cash appeared to yield no immediate dividends and as its unions were starting to flex their bankruptcy muscles concerning unpaid August salaries.

"We are waiting for things to happen later today," a Sveriges Ingenjorer spokesman told just-auto from Sweden. "We are prepared to make an application for putting Saab into bankruptcy if necessary, but our members do not want to do that really.

"The other unions think in the same way - they will not make any decision right now. The reconstruction is a way, as I see it, of avoiding bankruptcy, they get another chance. It is kind of good news."

The voluntary reorganisation process will cover Saab Automobile, Saab Automobile Powertrain and Saab Tools. All other entities, including Saab Parts and all overseas entities such as Saab Great Britain and Saab Cars North America, are excluded from the reorganisation.

The move will now allow Saab to apply for the Swedish State's wage guarantee scheme to allow salary payments to all employees to be made.

August salaries are expected to be paid within a short time frame following the court approval. As for outstanding debts to creditors, Saab says it would "seek the support of its creditors," with the aim of settling accounts in full.

Sveriges Ingenjorer represents around 500 engineers at Saab.

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