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Posted by JohnA [Email] (#426) [Profile/Gallery] (more from JohnA) on Thu, 8 Sep 2011 07:20:31 Share Post by Email
In Reply to: appeal to be filed, JohnA [Profile/Gallery] , Thu, 8 Sep 2011 07:17:19
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A Swedish court on Thursday rejected car maker Saab’s application for protection from its creditors. Saab was trying to secure additional funding in an attempt to avoid going bankrupt.

The court ruled that it was not clear from Saab’s application when expected Chinese investments would materialise. Other proposals for the reorganisation of the firm were deemed “too general” in nature.

The court said there was no reason to assume a reorganisation would be successful. Saab has been given until 29 September to file an appeal against the ruling.

Saab was forced to suspend production in April after its suppliers stopped deliveries because they were not being paid. Its workers have also had their pay delayed.

Swedish Automobile's chief executive, Dutchman Victor Muller, said Saab's suppliers are owed some 150 million euros. He founded the Dutch car company Spyker Cars in 2000, reviving a legendary brand name from the 1920s. The company changed its name to Swedish Automobile when Spyker bought Saab from US car company General Motors in January 2010.

(gsh/imm)

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