December 19th, 2011 - Drew Dowdell - CheersandGears.com -
It looks like the end is nigh for troubled Swedish automaker SAAB who filed for bankruptcy in Vänersborg, Sweden today. After receiving a number of life lines in the way of funding promises via various Chinese banks and auto manufacturers, the final life line by Youngman Automotive was cut when General Motors officially stated that they would not approve the deal.
Just last week, the court appointed administrator for SAAB's voluntary reorganization, Guy Lofalk, quit giving SAAB another two weeks to finalize the deal with Youngman Automotive.
The official press release from SAAB is on page 2
Zeewolde, The Netherlands, 19 December 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden this morning.
After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.
Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.
Source: SAAB Global Media