Auto Maker Saab in Bankruptcy

Saab enters Bankruptcy

The value of bankrupt Saab Automobile’s assets covers less than a third of its debts and only some preferential creditors will get money back. Saab’s balance sheet showed the company has debts of $1.9 billion and assets of around $532 million. Saab owes GM 2.2 billion kronor it paid for preferential shares but GM would only be entitled to that if the bankruptcy produced a surplus. Trustees said that mainly preferential creditors, or those who hold securities for their claims, will receive money. The Swedish state will get some money for securities in Saab shares and any surplus from the sale of tools and equipment in Saab’s tools unit. Employees of Saab won’t see any money. Trustees have said six or seven potential investors are going over plans to save the brand from dissolution.

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