Business News
Swedish government shifts into gear over loans to Saab
Jun 11, 2009, 14:42 GMT
Stockholm - Troubled Swedish carmaker Saab Automobile was Thursday reported to be moving closer to finding a new owner, sparking preparatory moves by the Swedish government.
The government has instructed the National Debt Office to prepare talks with Saab Automobile and a new possible owner over state loan guarantees, State Secretary Joran Hagglund said Thursday.
Current owner US giant General Motors (GM) has stated its intention to shed the Swedish brand that has since February been under bankruptcy protection as it attempts to reorganize its business.
'This should be seen that our understanding is that talks between GM and other parties are in intensive final stages,' Hagglund told Swedish radio news.
The National Debt Office was to be 'on standby' in order to enable the process, should state loan guarantees be needed, he added.
The government has to date held off on offering state loan guarantees to Saab Automobile, saying it needs to get a clear picture of Saab's new owner before putting taxpayer's money at risk.
News reports suggest three groups are vying for the company.
A Saab spokesman was quoted as saying developments could be 'rapid but we will have to wait a little longer.'
Saab's bankruptcy protection was recently extended to August 20.
GM's interest in Saab - one of Europe's smallest carmakers - dates back to the early 1990s. The company took full control in 2000.
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