In a move that should not come as a surprise Saab Automobile and two other subsidiaries filed for voluntary bankruptcy protection in the district court in Vanersborg, Sweden.
Swedish Automobile, the parent company of Saab Automobile, purchased the car company from General Motors last year. Their plans to turn around the struggling manufacturer have failed, and the company was forced into bankruptcy once creditors refused to continue to provide credit. The company's employees have not been paid for two months.
With fresh funding from Chinese investors, Saab hopes to continue operations and to pay its employees and current creditors in full. The main point was to forestall any potential lawsuits, which undoubtedly were forthcoming.
Interesting enough the company, through the bankruptcy process, will request monetary assistance from the Swedish government.
While Saab North America will not be directly affected by the bankruptcy, I'm sure that current Saab owners and enthusiasts feel good knowing that their beloved car company will continue to operate...at least in the mean time.
Please see the article in the New York Times for more info.
The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com and http://www.southsidetaxlaw.com.
