GM's Saab granted restructure extension

• Source: xinhua
• [09:53 May 31 2009]
• Comments

A Swedish court on Friday granted General Motors (GM) Corp.'s Swedish subsidiary Saab Automobile an extension of three months to restructure its business.

Saab can continue to restructure its business until August 20, a district court in Vanersborg, near Saab's main base in Trollhattan southwestern Sweden, said in a statement.

The court had granted Saab three months to restructure its business in February after GM declared its intention to shed Saab as part of its own restructuring efforts.

Saab, however, had not completed the reorganization process before the bankruptcy protection expired on May 20. It therefore had to apply for an extension.

During the next three months, Saab must find a new owner. Local reports said Saab is in contact with two or three interested parties.

Saab sold 93,000 cars worldwide and posted losses of some 3 billion kronor (341 million US dollars) in 2008.

GM bought 50 percent of Saab in 1990 and acquired the remaining stake in 2000.