Create a free Manufacturing.net account to continue

Saab Granted Extension On Reconstruction Process

Swedish court on Friday approved a three-month extension for Saab Automobile's reconstruction process, during which a sale of the car maker is expected.

STOCKHOLM (AP) -- A Swedish court on Friday approved a three-month extension for Saab Automobile's reconstruction process, during which a sale of the car maker is expected.

The Vanersborg district court's ruling means that the General Motors Corp.-owned unit can continue its process until Aug. 20, after which a new extension needs to be sought.

Trollhattan-based Saab went into creditor protection on Feb. 20 in an effort by GM to spin off or sell the unit.

Saab officials, who have described the court-managed reconstruction as "the most comprehensive" ever done in Sweden, earlier this month confirmed that three bidders remain in the sales process that began with 27 prospective buyers.

They had also said that they expect to complete the sale by the end of June.

Italy's Fiat has confirmed its interest, saying it wants to buy the company together with GM Europe's other brands -- Germany's Opel and Britain's Vauxhall. Reports have also suggested interest from Chinese automakers, such as Geely Automobile Holdings, as well as Swedish sports car maker Koeningsegg and U.S. Wall Street veteran Ira Rennert.

Geely has denied reports it was bidding for Saab.