Saab Administrator To End Restructuring Attempts, GM Still Rejects The Sale! image

Swedish Automobile N.V. (Swan) announces it has been informed that the administrator of the reorganization, will apply for termination of the voluntary reorganization of Saab Automobile AB and two subsidiaries with the District Court in Vänersborg, Sweden.

However, the Swedish automaker is hoping that Chinese car firm Youngman and a Chinese bank will agree to some form of capital injection that is not tied to ownership, daily Dagens Industri reports.

Yesterday morning, General Motors sait it will not support the latest proposed deal to sell its former Swedish unit Saab to a Chinese consortium.

“We have reviewed Saab’s proposed changes regarding the sale of the company,” GM spokesman James Cain said in a statement.

“Nothing in the proposal changes GM’s position. We are unable to support the transaction.”

Chinese investors Pang Da Automobile Trade Co and Zhejiang Youngman Lotus Automobile, had agreed to invest in the car manufacturer, but the deal has encountered numerous problems.

Swedish Automobile NV, the owner of Saab Automobile, on Tuesday said it’s in talks to sell a stake to an unidentified Chinese Bank to keep the carmaker in business.

Saab’s employees have still not received their November salaries, and two labor unions filed official requests for the money last week, which means Saab has seven days to pay or face bankruptcy proceedings.

Saab has lurched from crisis to crisis in the past year and has not produced any cars for several months as its main factory in Sweden, has been shut because of unpaid salaries and bills.