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Saab Files For Bankruptcy: Official

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2008 Saab 9-3 Sedan

2008 Saab 9-3 Sedan

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It’s official. Saab, along with its Saab Powertrain and Saab Tools subsidiaries, has filed for bankruptcy with a Swedish court this morning.

Following previous owner GM’s recommitment over the weekend to block any deal for the purchase of Saab, Chinese firm Youngman has finally thrown in the towel and announced that funding to continue and complete the ongoing reorganization process could not be concluded.

Saab’s parent company, Swedish Automobile, subsequently decided that the automaker without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. The Swedish court overseeing the reorganization process has since accepted the bankruptcy application and has appointed two receivers to help sell off remaining assets and pay back creditors.

Swedish Automobile, led by Victor Muller, said it does not expect to realize any value from its shares in Saab and will write off its interest completely. It is believed that Muller personally handed in the bankruptcy application for the 64-year-old company.

As previously reported, Swedish Automobile had hoped to sell Saab to Youngman, which was willing to build up the Swedish brand into a full-line luxury automaker with new products such as an entry-level 9-1, 9-6X sports crossover and 9-7 flagship sedan. However, such a deal would involve the handover of several technology licenses owned by former parent GM, which fears they may end up in the hands of its competitors in the Chinese market.

GM has a number of preferential shares in Saab and this past weekend said it wouldn't approve any of the recently proposed new ownership structures, ending hopes of a deal to be secured before a court decision on the continuation of Saab’s reorganization process that was to be made today.

Saab, which directly employs about 3,700 staff, hasn’t built a car since April. Production originally stopped after suppliers, which make up most of Saab’s creditors, stopped delivering parts due to unpaid bills.

It’s a sad day for Saab fans all around the world but as we've seen in the past bankruptcy does not always have to mean the end of a brand--only time will tell. In the meantime, click here for our complete coverage of Saab’s woes.
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Comments (6)
  1. I understand GM's position, but this is just BS. I'm sure there could have been a way to work this out. I just hope someone eventually buys the rights to the Saab name and we start seeing some new models.
     
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  2. Meh, no surprise here. Saab hasn't been relevant in a while if they really ever were. No big loss
     
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  3. It's upsetting to see the road Saab took to get here. So much struggle to stay afloat, and alas they didn't make it. It's sad and discerning to know that GM had this planned out. They knew they could veto any and all attempts to keep Saab afloat, and only sold it to Sypker to make a quick profit.
     
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  4. I was hoping to see Saab stay alive, but this doesn't come as much of a surprise in this economic climate. Hopefully someone will buy the rights to the name and do something with it
    At least I can still get parts for my car through Subaru! =D
     
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  5. good ol greedy gm at it again. good riddons tho, saab's really suck! boring and ugly.
     
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  6. I never liked SAAB. I mean their car looks weird and I dont think they kept up with technology well enough. No one ever drives a SAAB. I found the article here too. http://www.oneminutefinance.com
     
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