Bankruptcy frozen

Appeals court gives Saab new lease on life

3:34 min

A court of appeals in western Sweden has overturned a lower court’s ruling and grants the troubled Dutch-owned Swedish car maker permission to reconstruct the company – freezing efforts to force the firm into bankruptcy.

Hoping desperately for badly-needed funds from Chinese investors, Saab has been unable to pay salaries or subcontractors and the assembly lines have been shut down for months.

Those 3,400 workers whose salaries have not been paid for August should receive their money from the state guarantee fund by early next week.

A press spokesperson for Saab autos, Eric Geers, told TT news agency that the yes to reconstruction was enormous for all their partners "not least those partners in China, who are seeking approval to invest in Saab."

The request for reconstruction now goes back to Vänersborg district court which will appoint a person responsible to oversee the reconstruction.