Swedish Automobile NV today said that it has got a deal to sell 100-per cent of Saab Automobile to two Chinese companies for €100 million ($142 million), thus saving the cash-strapped carmaker from bankruptcy.

The deal comes just hours before Saab faced court action that could have led to its liquidation.

China's Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. will acquire Saab from Swedish Automobile under a memorandum of understanding signed yesterday and valid until 15 November.

Swedish Automobile recently changed its name the Netherlands-based sport car specialist firm Spyker.

"Swedish Automobile N V announces that it entered into a memorandum of understanding with Pang Da and Youngman for the sale and purchase of 100 per cent of the shares of Saab Automobile AB and Saab Great Britain Ltd. for a consideration of 100 million euros", the company said in a statement.

After the announcement, the court-appointed administrator for Saab, withdrew a petition from the Vaenersborg District Court in Sweden to terminate the restructuring of the carmaker.

Production at Saab's Trollhaettan factory in southwestern Sweden has been halted almost since April as suppliers refused to deliver over previous unpaid bills and the company had to delay paying wages to its nearly 3,700 employees for four straight months.

Saab had filed for protection from creditors in September, three months after Pang Da and Youngman agreed to buy a combined 53.9-per cent stake in Swedish Automobile for €245 million.

Burdened with debt and unable to pay wages to some of its employees, Saab was granted bankruptcy protection last month by a Swedish court, giving the carmaker some time to get funding from the two Chinese companies.

But negotiations dragged on and Swedish Automobile said early this month that the Chinese companies had failed to honour a partnership deal and provide €70 million in bridge financing while Saab was undergoing restructuring.

Saab's chief executive Victor Muller said this week that the Chinese suitors had instead offered only €21.9 million ($30.4 million) to buy all of Saab, which he had rejected.

After securing a deal to his liking, Muller said, "Now the company's future is really secured. The future looks very bright now… we have the deepest pockets onboard now ensuring that the company will blossom.''

The sale would require the approval of General Motors, which not only holds preference shares but is a creditor through being a supplier of parts to Saab. It would also require the nod from the Chinese authorities and the European Investment Bank, which has lent money to Saab.

Beijing had earlier rejected Hawtai Motor Group from acquiring Saab, but officials have hinted that this time around, it may approve the deal.

Saab will be the second Swedish carmaker to be acquired by Chinese companies after Ford Motors owned Volvo was acquired last year by Geely Holding Group for $1.3 billion in cash.