(September 7, 2011) Saab is filing for protection from creditors in a Swedish district court, the automaker's owner, Swedish Automobile, said today.

The proposed voluntary reorganization will be a self-managed, legal process under Swedish law headed by an independent administrator appointed by the court who will work closely with the Saab Automobile management team.

The reorganization is designed to secure short-term stability while it waits for funding from Chinese investors Pang Da and Zhejiang Youngman, Swedish Automobile said in a statement.

The reorganization plan includes a number of aspects aimed at lowering its cost-base and creating a viable, competitive and independent organization. The reorganization plan will be presented to creditors in more detail within three weeks of the filing, although this period could be extended by the court.

Victor Muller, CEO of both Saab and Swedish Automobile, said in a statement: "We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared."

As part of the reorganization filing, the court-appointed administrator will apply for the Swedish state's wage guarantee plan to allow wage payments to all Saab Automobile employees. August salaries are expected to be paid within a short time frame following the court approval.

With regards to outstanding debts to creditors, Saab Automobile will seek the support of its creditors for the reorganization process and is confident it will obtain this support, particularly because Saab Automobile aims at full redemption of outstanding debts.

Muller said that "the potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market."

Muller has agreed to sell a combined 53.9 percent stake in Saab to Chinese auto distributor Pang Da and automaker Zhejiang Youngman for 245 million euros ($351 million). The deal is awaiting approval from the Chinese authorities.

GM sold Saab to Spyker Cars in 2010. Spyker changed its name to Swedish Automobile earlier this year.

Saab suspended production in late March amid a cash crunch. After brief restarts, the factory in Trollhaettan, Sweden, has been halted since early June.