Friday, August 26, 2011

Saab Denies Reports that it is Seeking Court Protection - For Now

As the days go by without a viable solution to Saab's worsening financial problems, the closer the company gets to its breaking point.

Today, Sweden's public radio (Sveriges Radio) ran a report citing unnamed sources that said Saab's parent company Dutch group Swedish Automobile NV (SWAN) was preparing to apply for court protection from its creditors. If that were to happen, Saab would be placed in a process of corporate restructuring similar to the one it entered in 2009 while GM was in control.

Later in the day, Mats Fägerhag, head of technical development at Swedish Automobile NV told the radio station, "We have not taken any decision to apply for reorganization".

Swedish Automobile NV issued a rather vague statement saying the company is looking to secure funds and is evaluating "all available options" to "secure the continuity of Saab".

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