Saab unit could file for bankruptcy this month: GM
General Motor's Swedish unit Saab could file for bankruptcy protection "as early as this month" if the US automaker does not obtain support from the Swedish government, GM said Tuesday.
By Agencies |
WASHINGTON: General Motor's Swedish unit Saab could file for bankruptcy protection "as early as this month" if the US automaker does not obtain support from the Swedish government, GM said Tuesday.
The announcement came as part of a massive restructuring plan GM submitted to the US Treasury as part of the terms of a 13.4 billion dollars loan. With auto sales tanking, GM said it could need up to 16.6 billion dollars more by 2011 and said it plans to cut 47,000 jobs worldwide.
GM announced last year plans to try to find a buyer for the troubled Swedish brand.
"Given the urgency of stemming sizeable outflows associated with Saab operations, GM is requesting Swedish government support prior to any sale," GM said in the 117-page plan.
"The company has developed a specific proposal that would have the effect of capping GM's financial support, with Saab's operations effectively becoming an independent business entity effective January 1, 2010.
"While GM is hopeful that an agreement can be reached with the Swedish government to support this direction, the Saab Automobile AB subsidiary could file for reorganization as early as this month."
The announcement came as part of a massive restructuring plan GM submitted to the US Treasury as part of the terms of a 13.4 billion dollars loan. With auto sales tanking, GM said it could need up to 16.6 billion dollars more by 2011 and said it plans to cut 47,000 jobs worldwide.
GM announced last year plans to try to find a buyer for the troubled Swedish brand.
"Given the urgency of stemming sizeable outflows associated with Saab operations, GM is requesting Swedish government support prior to any sale," GM said in the 117-page plan.
"The company has developed a specific proposal that would have the effect of capping GM's financial support, with Saab's operations effectively becoming an independent business entity effective January 1, 2010.
"While GM is hopeful that an agreement can be reached with the Swedish government to support this direction, the Saab Automobile AB subsidiary could file for reorganization as early as this month."
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