Saab seeks bankruptcy protection

Saab has filed for protection from its creditors.

The struggling Swedish car marker has initiated a self-managed reconstruction process. Saab and its subsidiaries have filed for a "voluntary reorganisation" at Vanersborg District Court.

The move will help the firm avoid being pushed into bankruptcy while trying to secure additional funding, owner Swedish Automobile hopes.

"It will entail the best preconditions for using existing resources in the most efficient way," the company said.

The firm's ongoing troubles might encourage Saab owners to go for comprehensivebreakdown cover policies.

"Saab aims to secure short-term stability while simultaneously attracting additional funding," Swedish Automobile said.

The company has been facing production stoppages and funding problems for months, resulting in the inability to pay its suppliers and 3,700 staff.

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