Saab is gone: Saab Automobile Files for Bankruptcy image

Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden this morning – Monday Dec 19.

After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded.

The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.

Saab, which General Motors Co. (GM) sold to Swedish Automobile in February 2010, won protection from creditors in September and has been seeking an investor since then.

GM said Dec. 17 that it couldn’t support proposed alternatives for Saab because the options “are not meaningfully different” from previous suggestions.

“Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders,” said GM spokesperson James Cain.

“As such, GM cannot support any of these proposed alternatives.”

Production has been suspended at Saab’s main plant in Trollhattan, Sweden, since April as the company has struggled to pay its suppliers.