If you haven't heard by now, the American car industry is flooded with bankruptcy and bail outs. Overseas, the climate isn't much better. Last week, Swedish auto manufacturer Saab made headlines across the world as news spread of their impending submission for protection from creditors (Swedish version of Chapter 11 bankruptcy) with Swedish courts for a second time.
It was uncertain at the time if Saab would have enough money to pay their employees through the week let alone afford the already behind compensation of their parts suppliers. This week, they filed their claim and were denied by the court on grounds that Saab had no strong evidence that they will be able to restructure if approved. Well, Saab is in the process of appealing as we speak. They will take the time in-between to develop a plan of attack on how to reorganize their failing business. Until then, their fate relies in the hands of the courts.
The question of what will become of the Swedish manufacturer is still undetermined. Even with the proposed sum of money from Chinese investors that would get operations up and running once more, Saab's future doesn't seem to full of light. For now, anyway, they will have to hold in that unknown limbo, looming between financial life and death.
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