Zeewolde, The Netherlands – A day after Saab announced that it was seeking bankruptcy protection for a voluntary reorganization, the automaker has confirmed that the District Court has rejected the proposal.
The District Court in Vänersborg, Sweden said that it was unclear how the company intends to secure funding and continue its operations. Saab is still awaiting regulatory approval for funding from two Chinese companies with which it has partnered. In its ruling, the court said that “It appears unclear if – and if so when – the relevant Chinese authorities will approve the agreements.”
The court rejection paves the way for possible bankruptcy filings from labour unions. Saab has been unable to restart production that was halted when suppliers were not paid, and still owes 3,700 workers their August wages.
Saab said it is disappointed with the ruling and will appeal the District Court’s decision.