Saab files for bankruptcy
By Ronan Glon
Dec 19th, 2011
LLN
After several long and painful months of struggling to stay afloat, Saab has reached the end of the road and filed for bankruptcy this morning. This has been confirmed by several Swedish newspapers, as well as the district court in Vänersborg, Sweden.
Saab ’s last hope was to be taken over by Chinese company Youngman. This was initially a controversial option but as time passed, it became evident that it was the only option left.
Youngman already sent Saab almost $4.5 million last week and allowed it to closely avoid bankruptcy. It promised subsequent payments and things were begining to look up for the first time in a long while.
Over the weekend Youngman told the ailing automaker that it couldn’t continue to fund it because ex-owner General Motors was relentlessly blocking any Chinese involvement in the company. This included everything from a loan to a complete takeover.
Some accuse General Motors of killing Saab, while others say that the company merely defended its own interests. Whatever the case may be, it left Saab in a bad situation: it no longer had a potential new owner, and it did not have the necessary funds to pay its debts and continue its operations.
Saab’s Board of Directors met over the weekend and decided that it was in the best interest of the company, its employees and its creditors to file for bankruptcy. Three of the companies affected are Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB.
It is important to note that Saab itself filed for bankruptcy and that it wasn’t pushed into it by its creditors. This makes the process faster and simpler, but it also means that Saab CEO Victor Muller could be personally responsible for some of Saab’s financial woes.
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By Ronan Glon
Dec 19th, 2011
LLN
After several long and painful months of struggling to stay afloat, Saab has reached the end of the road and filed for bankruptcy this morning. This has been confirmed by several Swedish newspapers, as well as the district court in Vänersborg, Sweden.
Saab ’s last hope was to be taken over by Chinese company Youngman. This was initially a controversial option but as time passed, it became evident that it was the only option left.
Youngman already sent Saab almost $4.5 million last week and allowed it to closely avoid bankruptcy. It promised subsequent payments and things were begining to look up for the first time in a long while.
Over the weekend Youngman told the ailing automaker that it couldn’t continue to fund it because ex-owner General Motors was relentlessly blocking any Chinese involvement in the company. This included everything from a loan to a complete takeover.
Some accuse General Motors of killing Saab, while others say that the company merely defended its own interests. Whatever the case may be, it left Saab in a bad situation: it no longer had a potential new owner, and it did not have the necessary funds to pay its debts and continue its operations.
Saab’s Board of Directors met over the weekend and decided that it was in the best interest of the company, its employees and its creditors to file for bankruptcy. Three of the companies affected are Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB.
It is important to note that Saab itself filed for bankruptcy and that it wasn’t pushed into it by its creditors. This makes the process faster and simpler, but it also means that Saab CEO Victor Muller could be personally responsible for some of Saab’s financial woes.
Full text at link