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Saab struggles to survive

Once again, Saab's fate hangs in the balance

Published fredag 21 oktober 2011 kl 10.41
"No time to find new restructuring solutions"
(2:07 min)
Saab's situation changing every day. Photo: Adam Ihse/Scanpix.

The Vänersborg district court has until 31 October to decide whether Saab Automobiles' financial restructuring will be halted, an action that would strip the company of its bankruptcy protection, reports news agency TT.

The administrator responsible for restructuring Saab's business, Guy Lofalk, asked the court to halt the restructuring on Thursday because he says Saab is not sure it can get the money it needs from the two Chinese car makers Pang Da and Youngman.

In the application to halt the restructuring, he writes that Chinese partners no longer want to cooperate with Saab Automobiles' parent company, the Dutch-owned Swedish Automobile. He writes that the two Chinese companies want to directly invest in Saab and take over the company.

But the CEO of Saab, Victor Muller, disagrees. He wants Lofalk to be replaced and says a potential deal with US private equity firm North Street Capital could save the company. Muller says Lofalk went behind his and the company's back, an accusation Lofalk denies.

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