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Saab Requests Restructuring

Published fredag 20 februari 2009 kl 11.01
Lights out?

The Swedish based car giant Saab has sought legal restructuring to avoid bankruptcy after being abandoned by its American owner General Motors. The plan is to create an independent company.

At twenty to nine on Friday morning the documents were delivered to the district court in Vänersborg, in the southwest of Sweden.

This would mean that parts of Saab would have a chance to survive and that the subcontractors could get some of the monies owed back instead of losing everything if the company filed for bankruptcy.

However, while the restructuring is going on, the subcontractors can’t claim their money, and will have to wait for payment until the process is completed, according to news agency TT.

The planned reorganisation of the company would be achieved over a period of 3 months, and will need financial subsidies in order to succeed, according to a press release issued by General Motors. Saab will continue business as usual during the process.

Minister for Enterprise and Energy, Maud Olofsson, said to TT on Friday morning that the move by Saab was expected, as General Motors isn’t providing any more support. The Swedish government rejected General Motors’ plea for financial help earlier this week.

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