Saab expects sale by Friday

Saab is not commenting on who its new owner could be but reports say General Motors is close to selling the loss-making brand to Swedish luxury sports car maker Koenigsegg.

Saab spokeswoman Gunilla Gustavs said an announcement should come soon.

"I think that during this week, chances are good. It could be any time now," she said.

Saab sought protection from creditors in February and has been granted an extension of its business reorganisation until August 20 to line up a new owner and restructure.

Saab was put up for sale by parent General Motors earlier this year. The Swedish carmaker has said it needs US$1 billion in financing to see it through the economic crisis and has asked creditors to write off 75 per cent of the company's 10.6 billion crown (US$1.4 billion) debt, most of which is owed to GM.

The company said more than 80 per cent of its creditors had agreed to write down the value of their Saab debt.

Saab needs support from 75 per cent of creditors, as well as from creditors holding 75 percent of its debt, for the write-down to be carried out, a process that has to be approved by a Swedish district court on Wednesday.

"We are well above that, which is good. That makes Wednesday more or less a formality," Ms Gustavs said.

The Swedish government said last week it had authorised its debt office to begin talks with the GM unit on state loan guarantees.

Koenigsegg believes it can rescue Saab, Baard Eker, a co-owner, said at the weekend.

Mr Eker, who holds 49 per cent of Koenigsegg, told the Norwegian Dagbladet newspaper that the company “has several good solutions to bring into Saab."

Mr Eker, a Norwegian entrepreneur, said obstacles may still emerge which could potentially stop the sale, but he did not reply negatively when asked about Saab's comments that a deal could be in place next week, according to the paper.

Koenigsegg's has less than 50 employees and turns out only a handful of US$1 million super cars a year.

GM, which filed for Chapter 11 protection June 1, put Saab up for sale after deciding to cut its 20-year ties with the brand.

Saab produced nearly 100,000 cars last year, about 1 per cent of GM's global output. GM has held talks with a number of potential buyers for Saab, including Fiat and Chinese automakers.