GM's Saab Auto secures debt writedown

By Johan Ahlander

VANERSBORG, Sweden (Reuters) - Swedish carmaker Saab secured a key court ruling on Wednesday to cut billions of crowns in debt, paving the way for its proposed takeover by local sportscar maker Koenigsegg.

The ruling came after owner General Motors, Saab's biggest creditor, said on Tuesday it had struck a preliminary deal to sell Saab Automobile to Koenigsegg.

The court in Vanersborg, close to Saab's headquarters in southwest Sweden, approved the 75 percent writedown of Saab's more than 10 billion Swedish crowns ($1.28 billion) of debt after a vast majority of creditors gave the green light to the proposal earlier on Wednesday.

Saab filed for protection from creditors in February after its now bankrupt U.S. parent, to whom Saab owes most of its debt, said it would cut ties to the brand by the year-end.

Saab's chief executive Jan Ake Jonsson told a news conference after the court hearing the company had sufficient funds for it to complete the restructuring of its business and praised its much smaller prospective new owner.

The deal between the two carmakers, which is expected to close in the third quarter, is one of the most unlikely in automotive history -- Koenigsegg made 18 cars last year, Saab more than 93,000.

"Koenigsegg has an incredible cutting edge know-how in several areas while Saab has a lot of cutting edge know-how in other areas," Jonsson said.

While Saab has made a name building safe and sturdy saloons, Koenigsegg appeals to customers who are willing to spend around $1 million on a car that is capable of speeds of more than 395 kilometers (245 miles) an hour.