A bankruptcy was filed by Saab automobile after their previous owner General Motors blocked a takeover attempt by the Chinese investors. The automobile company was struggling very hard to stay in business and they were desperate enough to find a suitable investor.
The bankruptcy application was filed personally by Saab CEO Victor Muller in a court in southwestern Sweden. The District Court is expected to approve the application soon. With this ended his two years effort to bring a turnaround of the noted car maker which has been known for more than six decades for their rounded sedans and nice designs of their various models.
General Motors is holding some technology license for Saab and with that controlling power they ditched their last effort to come out of the crisis involving a Chinese investor. A financing plan was chalked out by the company and it was supposed to be executed with the help of some Chinese company.
Some people are saying that company may be broken into several parts and then sold in pieces. The company is located in Trollhattan where more than 3000 Saab employees are staying. They are hopeful that a new buyer can come out to salvage the brand.
The city Mayor said that “Our absolute hope is that the bankruptcy administrator will aim for a solution where the company is sold in its entirety.” Production of cars stopped and salary payments started getting delayed a few months back. CEO Muller was trying his level best to postpone the bankruptcy by selling of the different real estate of the company and coming up with various financial options in China and Russia.
But unfortunately, none of the deals matured as they were being blocked by the regulators showing different clauses being shown up by General Motors. He used to buy more time by making a reconstruction process under the bankruptcy protection.