Report: Saab to file for protection from creditors
 

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To say that Saab has had a rough 2011 would be one heck of an understatement. Sales are trickling slowly, the automaker's Trollhattan plant hasn't consistently produced vehicles since late April because suppliers weren't getting paid, and a failed alliance is making the Swedish automaker look like it has cooties.

Now it appears as though Saab is taking legal steps to keep the company going, as Reuters is citing a public radio report that claims the automaker will soon apply for court protection from creditors. If the courts grant temporary creditor protection, Saab will begin a process of corporate restructuring at the hands of an administrator and company management.

Though Saab has yet to officially confirm its intention to enter creditor protection, the move would seem to make sense given the automaker's string of disappointments and dire finances. The automaker announced earlier this week that it would delay its second-quarter report until August 31, perhaps to buy time until Saab officially engages the courts. That news followed Saab's announcement that August salary payments to employees may be late.

So what would creditor protection do for Saab? The move would likely buy the automaker additional time to drum up more alliances and raise more cash. If Saab still can't secure additional money or find new partners (there has been some success on this front), it appears all but inevitable that the company will dissolve.Saab to file for protection from creditors originally appeared on Autoblog on Fri, 26 Aug 2011 13:30:00 EST. Please see our terms for use of feeds.


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