With Spyker’s administrator looking to call an end to Saab’s reorganization, the pressure is on for the Swedish automaker yet again. A big obstacle to securing funds appears to be General Motors.

Saab’s former parent has balked at the possibility of Chinese investors taking majority stake, and since GM has a deal to continue supplying vital components, Saab proposed a new plan Wednesday, hoping to win over the bankruptcy court and the U.S. automaker.

The catch? This new plan could take weeks to negotiate, time the automaker isn’t sure it has.

After the automaker revealed Wednesday that the administrator of its reorganization Guy Lofalk will apply for termination of the voluntary reorganization of Saab Automobile and two subsidiaries with the District Court in Vänersborg, Sweden, time is of the essence.

In fact, reports show that the automaker and its creditors have only five to six days to submit their view to the District Court before it makes a final decision about termination of the reorganization — which could  result in the automaker’s bankruptcy.

Lofalk’s claim to the court states that the automaker lacks sufficient fund to continue the reorganization — a worry that has been raised by Saab’s creditors and investors alike, during the reorganization efforts.

Bypassing GM

As a result of Lofalk’s application, Saab is currently engaged in discussions with Zhejiang Youngman Lotus Automobile and a Chinese bank to secure loans that it needs in a few days to avoid bankruptcy.

But contrary to Saab’s original agreements with Chinese investors, this deal wouldn’t involve the Chinese manufacturer taking a stake in Saab, which would allow the transaction to proceed without a green light from former owner GM.

This is of particular importance, because GM, which licenses technology to Saab, has stalled previous proposals in which Youngman would take any ownership.

In fact, this deal wouldn’t even involve Pang Da Automobile Trade Co. at all, a company which had agreed in October to buy a 40 percent stake in Saab.
This deal was also out of the question when GM balked at the potential ownership changes.

During the previous attempts from Saab to push deals with Chinese investors through, GM voiced concern that a Chinese takeover of Saab wouldn’t necessarily be in the best interests of its shareholders, given its sizeable Chinese operations.

After citing that concern, GM even went so far as to say it would not continue to license its technology to Saab under the proposed ownership change.

The Next Step

So just how much does the Swedish carmaker need to borrow to avoid bankruptcy?

Saab needs to borrow a significant 600 million euros or $803 million, according to a report from Bloomberg.

In that very same report, chief executive officer Victor Muller was quoted saying, “We’re working on another structure where we don’t need to get the consensus from General Motors, because they don’t want to give it,” Muller said. “The transaction involves loans and no shares.”

According to Saab’s CEO, the Vaenersborg District Court in southwestern Sweden will likely make a ruling next week regarding Lofalk’s application to end Saab’s court-administered reorganization.

If the application goes through, the court granted protection against Saab’s creditors that halted pending bankruptcy petitions would be withdrawn, potentially resulting in the automaker’s liquidation.

Either way, Saab is already in the process of asking the court to remove Lofalk as the automaker’s reorganization administrator.

A Tough Year for Saab

Starting early last spring, Saab’s year has been full of narrowly avoided disasters, while the automaker dealt with problem after problem.

With its main factory in Trolhattan, Sweden, closed, the automaker’s production has been suspended since April due to a lack of sufficient funds to pay suppliers and employees.

And after plans with the two Chinese companies — Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co.— to invest in the firm and assume partial ownership hit a brick wall when GM shot the deal down, Saab was left to regroup and continue the search for ways to ensure its reorganization.

And with unpaid suppliers, employees and other creditors on the heels of the automaker, the court call this September to provide protection for the automaker against debtors came just in time.

But with the chance of this temporary comfort being taken away and the reorganization potentially being declared null and void, the company is scrambling once again.

But while the clock is ticking, and GM refuses to agree to any proposed ownership structure that involves the aforementioned Chinese companies, in an effort to calm onlookers speculation and concern, company officials said in a statement that they “will consider future steps and continue the current discussions with Youngman about the necessary funding to pay the wages and be able to continue the voluntary reorganization.”