“GM Bankruptcy No Danger for Saab”
Swedish car brand Saab has announced that a bankruptcy filing by owner General Motors would not disrupt its sale process. In fact, discussions with three potential suitors would continue, a Saab spokeswoman told news agency Reuters on Thursday. The Swedish automaker, which has been granted protection from creditors, said it remains confident that it will be able to present a suitable candidate for a deal in the near future.
General Motors is widely expected to file for Chapter 11 bankruptcy protection within days. But under Chapter 11 not all parts of GM are likely to be included under that status. Saab is a separate legal entity and has its own short-term capital. The Swedish brand has asked creditors to write off three fourths of the company's $US 1.4 billion debt, most of which is owed to GM. (ah)