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| Version 0 | Version 1 |
|---|---|
| Saab requests creditor protection | Saab requests creditor protection |
| (10 minutes later) | |
| The board of the Swedish carmaker Saab, which is owned by General Motors, has filed for reorganisation, seeking protection from its creditors. | The board of the Swedish carmaker Saab, which is owned by General Motors, has filed for reorganisation, seeking protection from its creditors. |
| The reorganisation process is the Swedish equivalent of going into Chapter 11 bankruptcy in the US. | The reorganisation process is the Swedish equivalent of going into Chapter 11 bankruptcy in the US. |
| The announcement follows Thursday's extraordinary board meeting in which bosses considered the company's future. | The announcement follows Thursday's extraordinary board meeting in which bosses considered the company's future. |
| There had been concerns about the loss-making carmaker after the Swedish government rejected GM's call for aid. | There had been concerns about the loss-making carmaker after the Swedish government rejected GM's call for aid. |
| 'Independent entity' | |
| Saab managing director Jan Ake Jonsson said in a statement that this was "the best way to create a truly independent entity that is ready for investment". | Saab managing director Jan Ake Jonsson said in a statement that this was "the best way to create a truly independent entity that is ready for investment". |
| In a restructuring plan submitted to the US Treasury this week, GM had said it planned to make Saab an independent business by the start of 2010. | |
| Saab has plans to launch three new models over the next year and a half. | |
| "Reorganisation will give us the time and means that help get these products to market while minimising the liquidity impact of Saab on GM," Mr Jonsson said. | |
| Saab said funding for the restructured company would need to be secured during the three-month reorganisation process and would be sought from both public and private sources. | |
| During that period, the company is not allowed to pay off any debts accumulated before the reorganisation was declared. |