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Saab To Be Shown To Bankruptcy Today?

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Saab To Head Into Bankruptcy Today?

William Maley - Editor/Reporter - CheersandGears.com

October 11, 2011

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Saab could be heading into bankruptcy today, if a report from Autocar is to be believed. According to the story, £60 million loan ($94M USD) from Chinese automaker Youngman Automotive is likely to be denied by the Chinese government. The reason why is due to the deal not having any intellectual property rights being acquired.

Saab has been waiting on a £60 million loan from Youngman and an additional £210M ($328M) from Zhejiang Youngman Lotus Automobile and PangDa Automotive to help pay off debts and workers. The only problem is the Chinese government approving the deal.

Reports in Sweden are suggesting the administrator handling Saab's restructuring under court protection could declare the company bankrupt today.

Source: Autocar

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