Saab‘s main union has formally applied for the automaker’s bankruptcy today (20 September), although all eyes are now firmly fixed on the Court of Appeal hearing the manufacturer’s voluntary reorganisation request.

“We have asked for Saab’s bankruptcy today in the district Court of Vanersborg,” IF Metall legal advisor Darko Davidovic told just-auto from Sweden. “We are just waiting and we know the [bankruptcy] Court won’t do anything until the Supreme Court gives its answer.”

The IF Metall legal advisor said it had no choice but to apply for the automaker’s bankruptcy as its members continue to be owed August salaries totalling SEK33m (US$4.9m), although any decision by the Appeal Court could potentially change the situation.

The embattled manufacturer received a rare piece of good news following the Court of Appeal in Gothenburg’s decision to allow it leave for a hearing contesting the bankruptcy protection rejection from a lower Court.

“If the decision is Saab will make a reconstruction of the company, then it is no harm done,” added Davidovic.”

IF Metall revealed the decision to proceed with the bankruptcy claim had cost it SEK700,000 (US$105,0000), but that it regarded this as a small price to pay when set against wages owed.

“Our members have a claim against SEK33m so we don’t have any choice,” said Davidovic. “The members pay their fee every month.”

Meanwhile, Chinese distributor Pang Da said it had no more information concerning its position with Saab as reports circulate it may have to write off previous investment in the stricken automaker.

Pang Da and Chinese manufacturer Youngman have consistently stood by Saab and will be eyeing the Court of Appeal’s decision this week with considerable interest.