Court close to a decision on Saab appeal

A SWEDISH court said yesterday it would decide in the next few days whether to allow struggling car maker Saab to appeal a ruling denying it protection from creditors, with Saab almost certain to slide into bankruptcy if its case is rejected.

“The case will be dealt with as a priority and a decision in the question of the right to appeal will probably be announced in a few days,” The Court of Appeal for western Sweden said in a statement.

Saab sought creditor protection last week, owing workers their salaries and suppliers hundreds of millions of crowns. Its factory in southwest Sweden has been mostly shut down since early April.

The court rejected Saab’s plea and at the start of this week the car maker’s own unions served bankruptcy applications – despite the company having conjured up a promise of €70m (£60.8m) in vital financing.

Saab appealed the decision, saying the lower court had overstepped its remit and that the new money showed it had a viable future. Saab wants creditor protection to give it time until a promised investment of €245m from Pangda Automobile Trade and Zhejiang Youngman Lotus Automobile gets the nod from Chinese authorities.