Saab has filed for bankruptcy following Chinese manufacturer Youngman’s decision not to provide further funding.
Youngman’s move appears to have been triggered by General Motors’ statement it could not approve any of Saab’ latest ownership proposals.
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“Swedish Automobile (Swan) announces that Saab Automobile, Saab Automobile Tools and Saab Powertrain filed for bankruptcy with the District Court in Vänersborg, Sweden this morning (19 December), said Saab in a statement.
“After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganisation of Saab Automobile could not be concluded.
“The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.
“Swan does not expect to realise any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.”
Saab was due to have a hearing into its voluntary reorganisation status later today in Vanersborg, but it appears that will now change to approval of its bankruptcy filing.
Further details are expected later today.
