Zeewolde, The Netherlands – Saab Automobile has filed for bankruptcy in Sweden. The filing, by parent company Swedish Automobile N.V. (Swan), also affects Saab Automobile Tools AB and Saab Powertrain AB.
Swan had entered into an agreement to sell Saab to Chinese company Youngman, but General Motors, which holds technology licenses and supplies parts to Saab, objected to the deal. Youngman informed Saab that it could not conclude funding to continue and complete Saab’s reorganization.
Saab Automobile’s board subsequently decided that the company would be insolvent without further funding, and that filing bankruptcy is in the best interests of its creditors. It is expected that the court will approve the filing and appoint receivers shortly.
Swan said that it does not expect to realize any value from its shares in Saab and will write off its interest in the company completely.