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8 September 2011
Court setback for Saab
Euronews.net - A Swedish court has rejected Saab’s application for protection from creditors, pushed the ailing carmaker closer to collapse.
Saab had gone to the court to win time while it waited for the Beijing government’s approval for investment money from China.
The Vanersborg district court in western Sweden said it was “unclear how the company would be able to solve its liquidity crisis and continue operations.”
Chief executive Victor Muller remained upbeat saying: “We are not dead yet” adding they would appeal against the ruling.
The court’s rejection left Saab’s fate in the hands of unions who said they would initiate bankruptcy proceedings on behalf of their members who have not received their wages.
Production halted at Saab after suppliers, who have not been paid, stopped delivering parts.
