Saab bankruptcy court hearing to take place in two weeks
Saab is set to face a bankruptcy hearing later this month after two unions applied to a local court to put the Swedish automaker into bankruptcy. Saab owes a number of suppliers and employees money, but hasn't been able to come up with the funds.
Last month Saab bank accounts were investigated to try and come up with funds to pay some of its workers. But after a given time frame to come up with the funds was not met by Saab, the unions had no choice but to ask courts to put the car maker into bankruptcy.
If bankruptcy takes place, it will activate a state wage insurance scheme to see the workers be paid. According to an Automotive News report, a representative of the unions has said that the bankruptcy process could take up to three weeks.
Meanwhile, Saab is still waiting on a 70 million euro investment from a Chinese deal. Apparently the only thing holding up the deal is approval by Chinese authorities.
Saab applied for bankruptcy protection based on this pending investment, but was rejected by the court after it saw no reason to believe a reorganisation would work for Saab. Saab appealed the court's decision on Monday earlier this week.
The bankruptcy court hearing will take place on September 26. Could this be the final nail in the coffin for Saab?
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