Saab Back From The Brink With Bankruptcy Protection

Just 24 hours after Saab appeared to be down for the count, the carmaker has been granted temporary bankruptcy protection by a Swedish court.

The original application was dismissed by the court for being “vague and completely undocumented”, but a second attempt at getting the paperwork right was accepted yesterday.

This means Saab’s owner, National Electric Vehicle Sweden (NEVS), now has additional time to complete talks currently underway with two ‘unnamed’ carmakers (Mahindra is reportedly one of them).

An agreement with one or both of the other carmakers could provide a much-needed cash injection to the Saab project, and give NEVS a chance to repay its creditors.

NEVS announced a halt to production of Saab’s re-born 9-3 in May of this year citing “short-term cash flow problems”, and has spent the weeks and months since fighting to avoid a compulsory bankruptcy declaration.