Saab, the Swedish automaker who faced an uncertain future early last year when it was under General Motors may be declared bankrupt because of Chinese Government.
Autocar reports that a last-minute rescue deal to save Saab is virtually certain to be blocked by the Chinese government. The automaker has still not received a vital bridge loan of €70m (£61m) that was secured by Chinese car firm Youngman, money that is key to its short-term survival.
According to daily newspaper Svenska Dagbladet, the deal will be blocked by the Chinese government, because no intellectual property rights are involved. If this happens, Saab will be declared bankrupt.
Reports in Sweden suggest the administrator handling Saab’s restructuring under court protection could pre-empt the Chinese government decision, which is not expected to be made formal until the end of this week.
Saab spokeswoman Gunilla Gustavs said the carmaker still expected to get the bridge loan.
“We are still expecting the Youngman loan to come in,” Gustavs said. She had no comment on when the money was expected or how long Saab could last without the cash.
The paper also quoted Swedish Debt Office representative Daniel Barr rejecting media reports the government could pay off Saab’s debt to the European Investment Bank and convert the security on the loan to shares in Saab.
In addition, reports have suggested tensions between Saab and the administrator Guy Lofalk, but according to Automotive News Europe Saab CEO Victor Muller has denied such stories.