(August 26, 2011) Swedish carmaker Saab, owned by Dutch group Swedish Automobile NV, is to apply for court protection from its creditors, public radio quoted sources as saying today, the Reuters news service reported.

Saab has struggled to raise funds, pay wages and settle supplier bills since it was rescued from bankruptcy last year by Swedish Automobile. Its existence has been precarious since General Motors prepared to shut it down as part of its restructuring in 2009.

Public radio quoted what it called several different sources as saying the company would apply for court protection from creditors. It did not say when this would happen.

"Swedish Automobile is aware of certain reports in Swedish media related to a possible filing by Saab Automobile AB for a voluntary reorganization under Swedish law," the company said in a statement.

It said it was in discussions with several parties to secure short- and medium-term funding in order to restart and sustain production.

"In order to secure the continuity of Saab Automobile, Swan (Swedish Automobile) and Saab Automobile are evaluating all available options," it said.

Michele Tinson, Saab's U.S. spokeswoman, said in an e-mail she could neither confirm nor deny the report.

Source: Reuters