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Saab seeks protection, charged with raising funds quickly

Swedish automaker Saab staved off encroaching creditors by filing paperwork for court protection on Wednesday, an unsurprising move for the 64-year-old Swedish carmaker known to be pondering a re-organization, according to published reports.

The Wall Street Journal reports employees' labor unions were set to move in on the company and force it to file documentation for bankruptcy proceedings so employees who were not paid last month could seek government jobless benefits. If protection from creditors is not issued, the company might have no other recourse but to file for bankruptcy protection.

"The reorganization is a move to stabilize the company in this tremendously rocky period," Chief Executive Officer Victor Muller told Bloomberg in an interview at Saab headquarters.

Reuters reports short-term financing that Saab is pursuing comes from sources including Chinese investments, for which approval is required.

Analyst Tom Muller with Amsterdam-based Theodoor Gilissen told Bloomberg that one significant benefit for Saab is the carmaker now has time to raise funds, which is an enormously important responsibility that should happen sooner than later.

"The potential for Saab Automobile as a viable, independent, premium car manufacturer is there," Muller said in statement.

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.