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Saab faces dire finance challenges

Saab Automobile is living day-to-day, drawing ever closer to the likelihood of having to file court paperwork for a reorganization that will protect the automaker from creditors, according to published reports.

AFP reports Swedish Automobile, the parent company of the troubled carmaker, went so far as to announce the company is cognizant of media reports suggesting the company will be filing court documents "for voluntary reorganisation under Swedish law," yet it did stop short of saying it would move forward with that step.

"We're still focusing on securing financing," spokesman Eric Geers told Bloomberg on Friday. "But in order to ensure the continued security of Saab, we remain open to all available options ."

The company has delayed disclosure of earnings from the first half of 2011, noting the snag is due to the report not yet being completed, according to the Associated Press. The delay will last five days.

Should Saab resort to reorganization proceedings, that would not mark the first time the company has explored this option to help itself. Bloomberg reports General Motors ( GM ) placed Saab in proceedings for reorganization for approximately six months in 2009 in order to work on reducing supplier debt.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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