Saab Files Liquidation
December 19, 2011 by staff
Saab Files Liquidation, Saab Automobile threw in the towel on Monday, filing for liquidation after its hopes of receiving a life-saving investment from Chinese investors collapsed in the face of opposition from its former owner, General Motors.
Saab and two subsidiaries filed with the District Court in Vanersborg, Sweden, according to a statement from Saab’s parent company, Swedish Automobile. The parent “does not expect to realize any value from its shares in Saab Automobile,” it said, “and will write off its interest in Saab Automobile completely.”
Viktor Muller, a Dutch entrepreneur who had previously been chief executive of a sportscar maker, Spyker, acquired Saab from G.M. in January 2010 for $74 million in cash and $326 million in preferred shares. But he was unable to obtain the financing he needed to modernize the Saab line-up at a time of global financial turmoil.
Mr. Muller’s efforts to keep the company afloat became increasingly desperate after suppliers stopped extending credit last spring, forcing a halt to production at the company’s main plant, in Trollhattan, Sweden.
Saab’s unions began legal proceedings in September that could have led to the company’s liquidation, and Mr. Muller responded by voluntarily seeking court protection from creditors.
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