Swedish car maker

Bankruptcy rumors swirl around Saab

Shares of Saab Automobile's mother company Swedish Automobiles were halted on the Amsterdam stock exchange at 2:20 pm Monday afternoon. The share price dropped by 20 percent on rumors that Saab would go into bankruptcy protection.

Sweden's business daily, Dagens Industri, published an article that suggests that Swedish Automobile would apply for bankruptcy protection to a court in Vänersborg on Monday.

But no application for bankruptcy was received when the Vänersborg district court closed at 4:00 pm this afternoon.

And Swedish Radio P4 has also received information that Swedish Automobile is working on a bankruptcy application. Their source did however not confirm when such an application would be filed.

That Swedish Automobile itself would apply for bankruptcy is not in accordance with what the company's CEO, Victor Muller, has said earlier when he told several news agencies that bankruptcy is "not an alternative".

Also today, Rachel Pang, the CEO of the Chinese company Youngman, who is interested in buying Saab, had left Stockholm after intense negotiations with the Saab CEO Victor Muller. She says both parties are near a solution and that money would be transferred to the struggling car-maker.