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Wed September 7, 2011
Saab Automobile files for bankruptcy
Saab Automobile AB filed for bankruptcy protection Wednesday.
Saab used to be owned by General Motors. GM sold the company to Spyker Cars in January of 2010.
From the Associated Press:
The owner of cash-strapped car maker Saab filed for bankruptcy protection on Wednesday in a last-ditch attempt to salvage a brand crippled by production stoppages, withheld salary payments and mounting debt.
Swedish Automobile, formerly known as Spyker Cars, said the move would buy it time to receive funding from Chinese investors, currently awaiting regulatory approval, and avoid bankruptcy.
The Wall Street Journal reports this is an attempt at reorganization, similar to Chapter 11 bankruptcy in the U.S.:
Saab Automobile has struggled with its finances for months. Production at its plant in the Swedish town of Trollhattan has been halted since April.
In a bid to solve its long-term funding needs, the car maker this summer signed agreements with two Chinese companies. But Saab will receive no money until regulators in China and Sweden approve the deal, so the company is still strapped for cash.