End of the road for Saab?

11/10/11 19:03 CET

corporate

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How close is Saab to reaching the end of the road?

Several reports say the administrator in charge of the Swedish car maker’s restructuring under court protection is about to end that process. That would lead to it being declared bankrupt.

A judge at the local court handling the matter said if the restructuring process looks unlikely to succeed, Saab’s creditors, the administrator or Saab itself could ask for creditor protection to be withdrawn, but there has been no such request so far.

Saab admits it has not yet got a 70 million euro bridging loan it was expecting from Chinese manufacturer Youngman but dismissed reports of its imminent demise as pure speculation.

It also insisted the Beijing government is not blocking that money, in response to a report that it is almost certain to do so.

Saab has struggled for months to stave off collapse, seeking new investors and selling off assets to pay suppliers and employees and resume production at its plant in Sweden.

More about: Bankruptcy, Car industry in crisis, Saab, Sweden

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