Saab might file for bankruptcy, again

Reports in Europe say that Saab will once again be seeking court-order protection from creditors, the European equivalent of bankruptcy.

The reports did not say when this would happen. Saab's U.S. spokeswoman, Michele Tinson, told Automotive News in an e-mail that she could neither confirm nor deny the report.

Swedish Automobile rescued Saab from shutting down last year when then-owner General Motors entered bankruptcy protection. Saab has been struggling ever since to restart production and to pay employee wages and suppliers.

The Saab production line essentially has been shut down since late April, when still-unpaid suppliers stopped providing parts. Saab said it has made deals with some creditors so that production can resume. It also has signed agreements with Chinese companies to get more cash.

If the company obtains a court-creditor protection order, Saab will once again get temporary protection from creditors while it works to restructure.

By Michelle Koueiter