Saab in court move to fend off bankruptcy

Car-MAKER Saab sought court protection from creditors yesterday to avoid being pushed into bankruptcy in a worsening of a crisis which it hopes will be solved by Chinese investment.

Saab’s Dutch owner, Swedish Automobile, whose shares were suspended in Amsterdam, said court protection would give the 60-year-old company breathing space to come to terms with creditors, get official approvals for the Chinese investments and secure other short-term financing.

Swedish Automobile’s Dutch chief executive, Victor Muller, said: “We have to bridge the financial gap. We felt the most orderly and quiet way to do it, bring some peace to this company, was to seek the protection of the court and to ensure that nothing can happen to Saab in the meantime.”

The firm said in its filing to the court in western Sweden, where Saab is based, that it could not rule out bankruptcy if the creditor protection was not successful. Muller said Saab owed €150 million (£133m) to suppliers. He said it was the firm’s goal to pay its creditors in full.

The court is due to announce its decision on whether or not to grant the creditor protection today.

Saab has had production at its Swedish plant at an almost continuous standstill since April because suppliers refused to provide parts until they received payment.