Swedish car giant Saab has announced a protection-from-creditors strategy which it has dubbed "reorganisation", leaving hundreds of staff working at its UK car dealerships facing job uncertainty.
More than 80 dealerships in the UK are owned by Saab, which is part of the General Motors empire.
The company said that it would "file for reorganisation under a self-managed Swedish court process, to create a fully independent business entity that would be sustainable and suitable for investment", after running into financial difficulties.
The reorganisation is a self-managed, Swedish legal process headed by an independent administrator appointed by the court who will work closely with the Saab management team.
As part of the process, Saab will formulate its proposal for reorganisation, which will include the concentration of design, engineering and manufacturing in Sweden. This proposal will be presented to creditors within three weeks of the filing. Pending court approval, the reorganisation will be executed over a three-month period and will require independent funding to succeed.
Jan Ake Jonsson, managing director for Saab Automobile, said: "We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganisation would be the best way to create a truly independent entity that is ready for investment."
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