Saab Seeks Protection From Creditors, Break From GM

By Kevin Spak,  Newser Staff
Posted Feb 20, 2009 7:56 AM CST
Saab MD Jan Ake Jonsson is seen during a press conference at the Saab factory in Trollhattan, Sweden, Wednesday Feb. 18, 2009.   (AP Photo/Erik Abel, SCANPIX)
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(Newser) – Saab applied for protection from creditors today, after parent company General Motors said this week it planned to cut the company loose, Bloomberg reports. In a process much like Chapter 11 bankruptcy, the Swedish automaker will restructure and look for funding with the goal of spinning off from GM or being sold; GM said several days ago it would dump Saab, after 2 decades of losses, unless the Swedish government offered a bailout.

The Swedish government has ruled out taking over the company, but but it may provide an emergency loan or loan guarantee to keep Saab afloat. Days ago Saab applied to the European Investment Bank for a loan of $572.5 million that could be backed by Swedish loan guarantees.