The owners of beleaguered manufacturer Saab have filed for bankruptcy protection in hopes of salvaging the once iconic brand.

Swedish Automobile has been unable to turn around the loss making firm since taking it over from General Motors last year and it hopes the latest move will buy it the time necessary for regulators to approve the proposed €254m cash injection from Chinese investors Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade.

The Saab Trollhattan factory has been at a standstill for much of the year as the company struggles to pay suppliers and since June it has been unable to pay its 3,700 workforce on time. This has led to a stand off with IF Metall, the union that represents most of the workers and has led to the union threatening to force Saab into bankruptcy.

Head of Swedish Automobile, Victor Muller, said the company currently has unpaid bills of about €150 million and has expressed bitterness that Russian billionaire Vladimir Antonov was blocked by the European Investment Bank from investing in Saab.
"He was willing to put in €100m in this company at a time when €30m would have been adequate," he said.

A decision on the application is expected on Thursday and if approved would see a restructuring of Saab.

Paul Healy - 8 Sep 2011