Saab files bankruptcy in Sweden; receiver appointment expected soon

By Caroline Salls

Pittsburgh, Dec. 19 - Saab Automobile AB, Saab Automobile Tools AB and Saab Powertrain AB have filed for bankruptcy with the District Court in Vanersborg, Sweden, according to a news release.

"After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded," the release said.

As a result, the company's board decided to file for bankruptcy because Saab will be insolvent without further funding.

The court is expected to approve the filing and appoint receivers for the company very shortly, according to the release.

Swedish Automobile NV said in the release that it does not expect to realize any value from its shares in Saab and will completely write off its interest in the company.

Saab is a Trollhattan, Sweden-based car manufacturer.

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