Saab’s application for protection from its creditors has been rejected by a Swedish court, the automaker said in a statement on Thursday, which means that liquidation may be its only option.
“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.
The automaker said that is disappointed with the ruling and will appeal the District Court’s decision.
The court set a deadline of Sept. 29 for an appeal. A court spokeswoman said that while Saab had no court protection petitions for bankruptcy could be made.
The broke automaker, owned by the Netherlands-based Swedish Automobil (nee Spyker), is struggling to hold things together while it awaits a hoped-for Chinese rescue and applied for the creditor protection yesterday to buy some time and reorganize.
Saab said it will “update the market tomorrow on further developments.” But European media were already writing the obituary for the Swedish brand. “Saab’s Demise Seems Inevitable,” was the headline on the BBC Web site on Thursday morning.
In 2011, Saab first suspended production in late March and as Automotive News reported, the factory in Trollhaettan, Sweden, hasn’t made a car since early June.