General Motors Halting Saab Deal
The car company General Motors has made an announcement to say that it will stop supplying its technology and cars to Saab if the company is bought out by Chinese investors.
It was recently announced that Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile had agreed on a deal to buy out Saab for 100 million euros ($138 million).
However now that General Motors have pulled out Saab has said that the negotiations for a buyout will now have to go back to the drawing board.
GM has said that it has made the decision as it thinks that it the best thing that it can do for its shareholders.
Saab appealed to the Swedish courts back in September to try and protect itself from its creditors who were trying to claw back their money as it was on the brink of liquidation.
It was at this time when the Chinese investors agreed to buy out the company and give it enough cash flow in order for it to continue the production of its cars and also to pay off its debts.