Yesterday Saab filed an application for protection from its creditors, but this morning that application has been rejected by the Swedish court. Saab’s application was meant for protection from its creditors, which would prevent the automaker from being pushed into bankruptcy.
If the plan government protection had been approved, Saab would have undergone a voluntary reorganization, but now that the court has denied the request, what’s next? Saab plans to appeal the court’s decision, but the court does not believe that a reorganization will work for Saab.
Currently Saab’s workforce has not received their August wages and production remains at a standstill. This latest ruling by the Swedish government could lead to Saab’s creditors forcing the automaker into bankruptcy.
Saab currently owes its suppliers $210 million.