London - Arabstoday
The carmaker Saab\'s application for protection from its creditors to help it avoid being pushed into bankruptcy has been rejected by a Swedish court. The rejection increases the likelihood that its owner Swedish Automobile will be pushed into bankruptcy. Saab had applied for protection while trying to secure additional funding. Saab had to suspend production in April when its suppliers stopped deliveries after not being paid. Its workers have also had their pay delayed. Vanersborg district court rejected Saab\'s application because it did not believe it would work. On Wednesday, Swedish Automobile\'s chief executive, Victor Muller said Saab\'s suppliers are owed some 150 million euros ($210; £131m). Delayed deals Swedish Automobile, formerly called Spyker, bought Saab from US giant General Motors in January 2010. Before the summer, Swedish Automobile announced that two Chinese firms would buy minority stakes in the company. However, these deals have not yet had regulatory approval in either Sweden or China. They also need to be approved by the European Investment Bank (EIB). Under the agreements, Zhejian Youngman Lotus Automobile plans to pay 136m euros for a 29.9% stake, while Pang Da Automobile will pay 109m euros for 24%. But the Chinese government is unlikely to give the two companies the go ahead, according to car analyst Jay Nagley of Red Spy Automotive. \"The Chinese government is concerned that its car industry is too fragmented,\" he said. \"It wants to see fewer, larger firms that can compete on the international stage. It doesn\'t want to see ambitious companies like these two buying a very small Swedish manufacturer.\" \"People in Sweden love Saab, and they hope it will continue. But many are pessimistic, and have become more so over the summer,\" said Jonas Froberg, car correspondent at Swedish newspaper Svenska Dagbladet.