Saab bankruptcy likely 'in days'

In response, Swedish trade unions said they could demand that Saab be declared bankrupt within days.

Saab had applied for protection while trying to secure additional funding.

Saab had to suspend production in April when its suppliers stopped deliveries after not being paid. Its workers have also had their pay delayed.

Vanersborg district court rejected Saab's application because it did not believe it would work. Saab may appeal the decision.

"They are more or less broke and now the company is in the hands of the unions," said Tom Muller, analyst from Theodoor Gilissen in Amsterdam.

Blue-collar union IF Metall's leader, Stefan Lofven, said: "We will now thoroughly analyse the new situation. If the company itself does not find another solution or seek to put itself into bankruptcy we could be forced to do so in the next few days."

White-collar union Unionen's chief lawyer, Martin Wastfelt, said it might make a similar decision imminently.

"It's all about minimising the risks to secure our members' money," he said.

On Wednesday, Victor Muller, chief executive of Saab's owner, Swedish Automobile, said Saab's suppliers were owed some 150m euros ($210m; £131m); Kazinform cites BBC.

To learn more go to www.bbc.co.uk