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DailyFinance

Saab Files for Bankruptcy Protection

By KARL RITTER
,
AP
posted: 272 DAYS 17 HOURS AGO
comments: 18
filed under:
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STOCKHOLM (Feb. 20) - General Motors Corp.'s Swedish-based subsidiary Saab filed for bankruptcy protection Friday so it can be spun off or sold by its struggling U.S. parent, officials said.
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The move comes after Sweden turned down GM's request for government help for Saab.
An application to reorganize the Swedish-based unit was filed at a district court in Vanersborg, in southwestern Sweden, Saab spokeswoman Margareta Hogstrom said.
The move comes after the Swedish government rejected a request from loss-making GM to inject money into the carmaker. GM, which is seeking help from the U.S. government to avoid bankruptcy at home, has been looking for buyers for Saab but said it needs more funding to spin off or sell the division.
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"We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal restructuring would be the best way to create a truly independent entity that is ready for investment," Saab's managing director, Jan Ake Jonsson, said in a statement.
The move would give Saab protection from creditors while it restructures in a process similar to a Chapter 11 bankruptcy in the U.S.
"Pending court approval, the reorganization will be executed over a three-month period and will require independent funding to succeed," Saab said, adding it would seek funding from both public and private sources.
Industry Minister Maud Olofsson said it was too early to say how the government would be involved in the process.
"It's very hard to say what our role will be," Industry Minister Maud Olofsson told Swedish news agency TT. "I don't known what kind of resources there are in the company."
On Wednesday, Olofsson rejected GM's plea for state funding for Saab, saying it was up to the U.S. automaker to save the brand.
In its own restructuring plan, GM said Tuesday it needed about $6 billion in support from the governments of Canada, Germany, Britain, Sweden and Thailand to provide liquidity for its overseas operations in those countries.
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Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2009-02-20 05:33:14
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Recent Comments

1 - 10 of 18
18 comments

HCHEVY 02:24:59 PM Feb 20 2009

When I see foreign cars I see ugly. I also see them sucking the life out of America with the help of our own people.

RTippe 02:20:26 PM Feb 20 2009

Euro cars are ugly?Funny,i look out the window and see the BMW 750 sitting there and the benz....both look great..whats wrong with you?

RTippe 02:19:31 PM Feb 20 2009

How do you need funding to sell something?

Merlin1649 02:08:57 PM Feb 20 2009

Good ridence to saab. saab is synonymous with ugly. Overrated just like most other European cars. Don't know why GM would want to be associated with them in the first place. Just another bad business desicion I guess. Hope GM gets through this.

DwightM101 10:21:34 AM Feb 20 2009

If General Motors sold Hughes Electronics Corp. they wouldn't need any bailout money for a few years.

LewisErmer 09:23:41 AM Feb 20 2009

Good do not give them anything, I think auto and banks should of not got anything, look at us now they got these billions and the stocks are still falling and the banks still do not make loans it was just another scam on the american people...I say its time to do something, the banks are not working with people that are losing their homes they cause this mess lets find all the CEO"S and drang them to the street and have our own trial and then we go to congress and drag them to the street and convict them of treason after all they get their perks from big business and it was their greed that caused this mess, oh and we are not going to forget you senators...

Dpaperplane1 09:12:17 AM Feb 20 2009

I'm not sure of the exact numbers, but you get the idea.GM employees:1978: 250,000 union 46,000 salary 1988: 200,000 union 45,000 salary1998: 130,000 union 45,000 salary2008: 76,000 union 40,000 salaryAfter this year, I predict there will be more salary GM employees than there will be emplyees actually building their vehicles.

Dpaperplane1 09:05:41 AM Feb 20 2009

Once again, this demonstrates that it's not the UAW that is ruining GM, it's the idiots at the top. This has been going on for a decade now. Why is Rick Wagoner still CEO? Nothing he has done has proven effective. All the buyouts, job cuts, VEBA, etc have not produced any positive results. Why does the Board of Directors allow this to continue? He's had his chance to turn things around. He's done a marvelous job of projecting the blame onto the UAW. If only he was as successful at running a multi-billion dollar company. I say, if GM files for bankruptcy protection, then any "restructuring" should start at the top beginning with Wagoner, and should include those Board members who have elected to retain him.

Llrowley1253 08:52:22 AM Feb 20 2009

GM is full of itself thinking we the taxpayers owe them something. Look at their losses and then tell me they are a company that can be saved. Sweden is right, it's up to them to save themselves. At least Sweden has intelligent people running their govt.

JJLaman 08:47:11 AM Feb 20 2009

Pure shame what GM has done to Saab. Anyone that has ever owned one (I once owned a 9000 Turbo) can tell you that it was easily one of the best cars in the world (especially for the money when compared to other European cars). I once thought like alot of people out there, that the cars they made were ugly but once I drove one I realized that looks aren't everything. The best looking things GM ever made never drove like a Saab or came with such standard luxary or safety (that is, until GM bought them and started to ruin the cars).

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