General Motors' loss-making carmaker Saab Automobile said on Friday it would file for a reorganization plan, a Swedish legal procedure which would give it protection from creditors.

We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment, Saab Managing Director Jan-Ake Jonsson said in a statement.

Saab said funding for the restructured company will need to be secured during the reorganization process and will be sought from both public and private sources.