Stockholm  – A Swedish court Friday extended bankruptcy protection until August for loss-making Saab Automobile, a subsidiary of US automotive giant General Motors Corp.

The brand filed for bankruptcy protection in February as part of attempts to reorganize its business. That move came after GM declared its intention to shed Saab as part of its own restructuring efforts.

A district court in Vanersborg, near Saab’s main base in Trollhattan, south-western Sweden, granted the three-month extension through August 20.

The bankruptcy protection formally expired May 20, but the court appointed administrator, lawyer Guy Lofalk, recently applied for an extension.

Saab is in talks to find a new owner, and said it is in contact with two or possibly three interested parties.

Pending a decision on a new owner, the Swedish government has so far refused to offer loan guarantees to Saab.

Saab has sought to write-down its debt, and is overseeing operations.

According to documents filed to the court in February, Saab posted losses of some 3 billion kronor (341 million dollars) for 2008, and expected losses of the same magnitude this year.

Saab recently shed 700 employees from its workforce of about 4,000 in Sweden. Most work at its Trollhattan plant.

GM’s interest in Saab – one of Europe’s smallest car makers – dates back to the early 1990s. The company took full control in 2000. (dpa)