Saab Cars North America appoints administrator
(Reuters) - Saab Cars North America (SCNA) said it hired a financial adviser to administer its operations, after its Swedish parent was declared bankrupt by a court on Monday.
SCNA said in a statement that it had chosen McTevia & Associates, a renowned financial adviser to companies in transition, and that it will continue its day-to-day operations in the interim.
Saab, which has made cars for 64 years, has suffered cash problems since March after 2010 sales fell short of target amid the disruption of its sale by General Motors (GM.N: Quote).
It was declared bankrupt on Monday, ending a nine-month survival battle by its Dutch owner Swedish Automobile SWAN.AS.
"The SCNA board's decision to explore all possibilities out-of-court is the most appropriate direction to take for customers, dealers and creditors," President Tim Colbeck said.
SCNA said it is committed to developing a solution that would provide warranty coverage for 2010 and 2011 Saab models.
General Motors is honoring Saab warranties for model year 2009 and prior years, as per agreements, it said.
It decided to sell the brand in 2009 after the financial crisis and came close to closing it before Swedish Automobile, then called Spyker Cars, bought Saab in January 2010.
(Reporting by Arnav Das Sharma in Bangalore; Editing by Unnikrishnan Nair)
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