Saab Files for Bankruptcy Protection

Saab Files for Bankruptcy Protection

Another week and another sob story regarding Saab. The troubled automaker has just applied for protection from creditors, and is trying to avoid the bankruptcy petition made by the unions.

A once thriving manufacturer that made fighter aircraft, trucks and automobiles, the auto division of this 65 year-old company has been struggling ever since General Motors decided to liquidate its Swedish arm.

In 2009, Saab was bought out by Spyker Cars NV of Holland for $400-million. Since the take-over, Saab has struggled to keep the production line going and the much anticipated new 9-5 model has thus had trouble hitting the market place.

With creditors constantly breathing down Saab’s neck to get paid, Saab has filed for protection against creditors, so it can try to once again raise money and restart operations.

Saab CEO Victor Muller said in a statement; “A voluntary reorganization process will provide us with the necessary time, protection and stabilization.”

The plants in Trollhaettan have been quiet since June of this year. With suppliers losing confidence and workers waiting to get paid, it will take a miracle for Saab to get going again and to start making profit.

[Source: Bloomberg]