GM unit Saab says still talking to bidders

STOCKHOLM (Reuters) - Saab Automobile said on Thursday the possibility of a bankruptcy filing by owner General Motors Corp had not disrupted its sale process and that it was still in discussions with three potential suitors.

A spokeswoman for the Swedish automaker, which itself has been granted protection from creditors, said the firm remains confident it can present a suitable candidate for a deal soon.

"There are three left and we are in talks with all three and we together with GM will select one to move forward with," spokeswoman Gunilla Gustavs said.

GM is widely expected to file for Chapter 11 bankruptcy protection within days after its bondholders rejected a proposal to restructure $27 billion in debt.

Saab has asked creditors to write off 75 percent of the company's 10.6 billion crown ($1.4 billion) debt, most of which is owed to GM. GM has also agreed to provide $250 million worth of equipment which Saab will use to make its new car models.

Under Chapter 11 not all parts of GM are likely to be included under that status. Saab is a separate legal entity and has its own short-term capital.

Gustavs said possible buyers were undoubtedly weighing up the possible impact of a GM filing.

"I'm certain the investors have asked that question and given that they are still in the process this would indicate they haven't received any information that would deter them."

She added: "With the information we have, we are not worried. And we will present a preferred candidate soon, within the coming weeks."

Gustavs said she could not disclose any information on which investors were left in the bidding for Saab.

The carmaker sought protection from creditors in February to buy time to find a new owner after GM said it would cut ties with the brand by January 1, 2010. Saab has said it expects a final deal to be agreed hopefully sometime in early summer.

(Reporting by Victoria Klesty; Editing by Greg Mahlich)