Saab given a second chance in court of appeal

There is new hope for the beleaguered Swedish carmaker Saab as the court of appeal in western Sweden announced lunchtime that it will take another look at whether the company should be given protection from bankruptcy or not.

This was rejected by a district court just over ten days ago. Four judges will now look into the matter and decide whether a reconstruction of the company is tenable. Earlier on Monday, the judge of appeal Peter Isander told the news agency TT that this decision will take "a couple of days".

Saab wants to get protection from bankruptcy while it waits for an injection of money from its Chinese investors. If the court grants this protection, the bankrupcy procedures - put in motion by among others the white collar union - will be halted and the state will pay out salaries, which later will have to be re-paid.

The Saab plant in Trollhättan has not produced any cars since April this year. The 3400 workers at the plant have still not had their August salaries.