Saab now bankrupt
Home >
News >
Saab
26th December, 2011
Saab Automobile AB (Saab Automobile), Saab Automobile
Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden
last week.
Having received the position of General Motors on the contemplated transaction with Saab
Automobile, Youngman (a party to the intended buy-out) 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 the filing and appoint receivers for Saab Automobile.
Swedish Automobile N.V. (owners of Saab) does not expect to realise any value from its shares in
Saab Automobile and will write off its interest in Saab Automobile completely.
The financially troubled Swedish car maker had been intensely negotiating with two Chinese
companies (Pang Da Automobile Trade Co., Ltd. and Zhejiang Youngman Lotus Automobile Co., Ltd.) to
take-over Saab Automobile. However, General Motors (the previous owner of Saab) continued to have a
say on who, if anyone, could use GM technology in Saab products. GM were unwilling to permit the
Chinese companies to use GM technology. There has been no statement to clarify the GM decision. On
that basis, it isn't known if the GM decision is based on supply, competition, financial or other
issues.
Saab production lines have been idle since April 2011.
| 
