Swedish courts will make a decision on Saab's future next Friday, 16 December

Beleaguered Saab has until next Thursday, 15 December, to present reasons why it should not be forced into bankruptcy.

The Swedish carmaker has been plunged deeper into crisis following today’s earlier news that GM will veto the latest proposed deal to save the company.

The administrator handling Saab’s affairs, Guy Lofalk, has asked a Swedish district court to end the reorganisation process that is currently protecting Saab from its creditors while it tries to secure vital funding.

The court dealing with the issue has registered Lofalk’s application and is due to make decision on 16 December. It has given Saab a deadline of 15 December to respond to Lofalk’s request, while the company’s creditors can also express their views to the court.

Saab says it will seek a continuation of the reorganisation process and ask for a new administrator to be appointed in Mr Lofalk’s place.

At the same time, Saab is still negotiating with Chinese investors to try to secure funding to enable it to pay workers’ wages and continue the reorganisation process.

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