Saab has been dealt a twin blow with its administrator applying for the automaker’s bankruptcy protection to end as former owner General Motors rejects a new ownership structure.

The Swedish automaker is urgently trying to satisfy GM with new proportions of control but of more pressing need is the lack of any finance, so far, thought to be originating from Chinese company Youngman.

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“Swedish Automobile [Swan] announces it has been informed the administrator of the reorganisation, Guy Lofalk, will apply for termination of the voluntary reorganisation of Saab Automobile and two subsidiaries with the District Court in Vänersborg, Sweden,” said a Swan statement today (7 December).

“Saab Automobile and its creditors have approximately five to six days to submit their view to the District Court before the court takes a final decision about termination of the reorganisation. The management of Saab Automobile will consider future steps and continues the current discussions with Youngman about the necessary funding to pay the wages and be able to continue the voluntary reorganisation.”

Saab has been unable to pay its almost 4,000 employees for November salaries while the rapid approach of the Christmas holidays will also see December wages start to become an issue.

Should the worst happen, the Swedish government could be liable for a substantial bill, having guaranteed a EUR280m (US$376m) loan from the European Investment Bank and could also have to pick up a possible six months wages for Saab’s employees as they seek other work. The government has already paid three months’ salaries as the automaker entered bankruptcy protection.

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Meanwhile, General Motors is standing firmly against the new Saab proposal concerning ownership although it is not clear what any new split might have been.

Following what it described as “receipt of new information from Saab,” GM manager financial news,  James Cain, told just-auto in an emailed statement the US manufacturer would oppose the new proposition.

“We have reviewed Saab’s proposed changes regarding the sale of the company,” said Cain. “Nothing in the proposal changes GM’s position.  We are unable to support the transaction.”