Saab's parent company has successfully applied for protection from bankruptcy as it seeks extra time to source funds to save the car maker from financial collapse.
The company trying to revive the Saab brand to make electric vehicles, National Electric Vehicle Sweden (NEVS), recently admitted that it did not have enough money to pay all of its 900 suppliers.
However, NEVS stated that it was involved in "tripartite negotiations with two global vehicle manufacturers" who might invest in Saab and enable the suppliers to get paid.
It also said, however, that negotiations "are still progressing, but are complex and have taken more time than we predicted".
The majority of NEVS suppliers have chosen to await the outcome of the ongoing negotiations, but some creditors have filed applications for a court order to force the company to pay them.
That is a situation NEVS is keen to avoid because it fears it might jeopardise its investment negotiations with the unnamed car companies.To give itself more time, NEVS applied to a Swedish district court for bankruptcy protection.