SAAB FILES FOR BANKRUPTCY
19 Dec, 2011
Swedish motor company, Saab, has filed for bankruptcy following failed takeover talks with Chinese investors.
The talks with companies including Zhejiang Youngman Lotus Automobile, broke down following interventions from the company that owns part of Saab, General Motors (GM) due to the fact that they were not entirely happy with plans for the company to be taken over by Chinese companies. This is reportedly because they did not want Chinese carmakers to have access to Saab’s technology licences.
Saab said that the bankruptcy filing is the only option thanks to the breakdown of the talks. As a result of the filing, production has been suspended at the main Saab factory in Trollhattan in Sweden and employees have claimed that they have not been paid for over a month.
According to the BBC, Saab said: “After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to complete the reorganisation of Saab could not be concluded.”
“The board subsequently decided that the company, without further funding, will be insolvent, and that filing bankruptcy is in the best interests of its creditors,” the company added.