Swedish court rejects Saab reorganization application

A Swedish court Thursday rejected struggling carmaker Saab's application to reorganize its business as it seeks additional funding, DPA reported.

The decision by the court in Vanersborg was announced the day after Saab filed an application for voluntary reorganization.

The court said the legal requirements were not fulfilled and rejected the application.

Saab and its Dutch-based owner Swedish Automobile said Wednesday that the voluntary reorganization process was aimed at securing short-term stability.

Production at the company's main plant in Trollhattan, western Sweden, has been at a virtual standstill since April and wage payments have been late for three months in a row.