Swedish Automobile, the Amsterdam-listed company that owns Saab, announced on Tuesday its British subsidiary had filed for administration as it awaits funding from Chinese investors.
“Saab Great Britain Ltd filed for administration with the High Court in London,” Swedish Automobile said in a statement. “The board of Saab GB is of the opinion that administration gives the company and creditors the necessary legal protection until the required funding for the company has been secured,” the statement added.
„The appointment of the administrator is effected by the directors of Saab GB. Once appointed, the administrator will take on the management powers of the directors,” read the release. Swedish Automobile said it is waiting for Chinese investor Zhejian Youngman Lotus Automobile Company to fulfill a conditional funding commitment for the payment of wages to the employees of Saab Automobile in order to continue activities at Saab Great Britain.
Youngman and Pang Da Automobile Trade Company signed a memorandum of understanding with Swedish Automobile five weeks ago to buy Saab for 100 million euros ($134 million), but the deal didn’t get General Motors’ approval. GM has the right to veto the sale of Saab as it licenses technology to the Swedish carmaker.