By Maximilian Clarke
After a tumultuous year, Saab have finally filed for bankruptcy, its Dutch-based parent company Swedish Automobile N.V (Swan) have today announced.
Bankruptcy had widely been anticipated in September after an attempt to seek protection from the indebted manufacturer’s creditors was blocked by the Swedish courts, prompting panic among its workers who feared they would not even be paid.
After having received the recent position of General Motors on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.
Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.
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