Saab Bankruptcy: Saab Files For Bankruptcy After Takeover Attempts Failed

By on Dec 20, 2011 in Automobile, Business, Europe, World Comments
Saab CEO Victor Muller
Saab CEO Victor Muller
Credit: Miguel Villagran
/Getty Images

Saab Automobile filed for bankruptcy on Monday, December 19, 2011 after previous owner General Motors Co. (GM) blocked the latest takeover attempts from Chinese investor Zhejiang Youngman Lotus Automobile Co. This was reported by international news sites on the same day.

According to reports, Saab CEO Victor Muller personally filed the bankruptcy application to a court in southwest Sweden.

“This is the darkest day in my career, probably in the history of Saab. But we had no other alternatives,” Mueller was quoted as saying.

Reports said that Muller bought Saab from GM in 2010, paying $74 million in cash and $326 million in preferred shares. His efforts to rebuild the company did not succeed after GM reportedly refused to allow Saab to transfer the technology that it had licensed from GM to the Chinese investors who planned to rescue the company.

“Saab’s bankruptcy is a sad ending for a once-proud brand. Saab was simply caught in the middle between a still reorganizing General Motors, which could not afford to compromise its Asian business, and its potential Chinese acquirers,” Anthony Michael Sabino, a professor at St. John’s University‘s Peter J. Tobin College of Business reportedly said.

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