Thursday, 8 September 2011


A court on Thursday rejected Swedish carmaker Saab's request for protection from its creditors, it said, pushing the company one step closer to bankruptcy. "The Vaenersborgs district court has today decided to reject Saab's ... request for a voluntary reorganisation process," the court said in a statement. "The court has concluded that there is not enough reason to believe that a company reorganisation would be successful. The company's request is therefore rejected," it said. Saab has until September 29 to appeal against the ruling. Saab's biggest union, IF Metall, said it "lamented" the decision, after having said on Wednesday that bankruptcy protection "could be a good solution." The company is now at the mercy of its creditors. "If the company doesn't find another solution, or if it doesn't declare bankruptcy itself, we may have to do it ourselves in the coming days," IF Metall chairman Stefan Loefven said in a statement. In early 2010, Saab was saved from bankruptcy by Dutch group Swedish Automobile, then called Spyker which bought the brand from US car giant General Motors. With no cash and stagnant sales, Saab, which 3,700 people, has stopped paying its suppliers and they have in turn halted deliveries since April. The company owes about 150 million euros ($210 million) to its suppliers, according to Swedish Automobile chief executive Victor Muller.



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