Check one item off our GM bailout checklist: With no rescue from Sweden, Saab Automobile AB filed for bankruptcy on Friday. As General Motors Corp. lobbied for more money from Washington, it presented a massive restructuring plan that severed its ties with the unit.
In a statement, Saab said the Swedish court process is to reorganize Saab into a fully independent business, aiming to bring resources back to Sweden. It also has three new models ready to be launched over the next year and a half. And as it turns out, the Swedish government could still provide loan guarantees to Saab following a restructuring, a senior official told Reuters.
Of the restructuring, Saab managing director Jan Ake Jonsson said, "We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment."
As noted by a Bloomberg article, Sweden has ruled out taking over Saab, saying taxpayers' money shouldn't be pumped into a company that's been unprofitable for 19 of the last 20 years. Saab is seeking funds from both public and private sources.
original post by Baz Hiralal for TheDeal Blogs Network
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