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Saab struggles to survive

Saab can be headed back into bankruptcy

Updated torsdag 20 oktober 2011 kl 19.38
Published torsdag 20 oktober 2011 kl 16.48
Saab's factory in Trollhättan Photo: Björn Larsson Rosvall/Scanpix.

The administrator responsible for restructuring Saab's business, Guy Lofalk, has asked that the process be halted, according to a press release from Swedish Automobile, the parent company of Saab, reports news agency TT. Lofalk to news agency Reuters that there was not enough money to continue with the restructuring of the compnay.

Now the district court must decide whether the process will be stopped. If such a decision is made, the bankruptcy petitions against the company currently on hold will restart, and the company will lose the protection it currently has from its creditors.

According to the press release, Saab wants Guy Lofalk to be replaced. The restructuring, which was granted a month ago by the district court, is meant to turn the company into a viable business.

Saab's debts to suppliers reaches nearly $US 212 million.

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