Troubled Swedish carmaker Saab, owned by Dutch group Swedish Automobile NV, is to apply for court protection from its creditors, public radio quoted sources as saying on Friday. Amsterdam-listed Swedish Automobile said in a statement on Friday it was aware of the reports, and said it was "evaluating all available options."
Swedish Automobile shares, which tend to be volatile, fell as much as 21 percent after the media reports. Saab, rescued from bankruptcy last year by Swedish Automobile as former owner General Motors Co prepared to shut it down, has struggled to raise funds to restart production, pay wages and settle suppliers' bills.
Public radio on Friday quoted what it called several different sources as saying the company would apply for court protection from creditors. It did not say when this would happen. "Swedish Automobile is aware of certain reports in Swedish media related to a possible filing by Saab Automobile AB for a voluntary reorganisation under Swedish law," the company said in a statement.
It said it was in discussions with several parties to secure short- and medium-term funding in order to restart and sustain production. "In order to secure the continuity of Saab Automobile, Swan and Saab Automobile are evaluating all available options," it said.
If the company obtains a court creditor protection order, it would place it into a process of corporate restructuring. Under this process, which Saab entered in 2009 after GM made clear its intention to cease funding the company and exited later that year, the company is granted temporary protection from creditors while an administrator and management seeks to restructure it into a viable business.
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