The news we did not want to hear has arrived: historic Swedish carmaker Saab has filed for bankruptcy this morning at the court of Vänersborg, Sweden.
Swedish Automobile CEO Victor Muller filed for bankruptcy of Saab along with its Saab Powertrain subsidiary today, following GM’s refusal to support a new plan of investment and loan that prompted Chinese firm Youngman to announce that the funds to continue and complete the ongoing reorganization of the historic Swedish carmaker could not be carried out. Apparently, GM (which owns part of Saab) did not want did not want Saab’s Chinese partners to access its technology licenses, obstructing the final desperate efforts to save the brand.
Swedish Automobile, the Dutch company that controls Saab, decided that without further funding the company is bound to become insolvent and therefore filing bankruptcy would be the right thing to do in the best interests of its creditors. It is expected that the Swedish court overseeing the reorganization process will approve of the filing and appoint receivers for Saab pretty quickly. Last week the Dutch financial market regulator halted trading in Saab shares, while Swedish Automobile said it does not expect to realize any value from its shares in Saab and will write off its interest completely.