White-collar labor union Unionen said it will file bankruptcy proceedings against Saab on Monday afternoon, following last week's rejection of Saab's application for bankruptcy protection by a district court.

Local Unionen leader Cecilia Fahlberg regretted that the union had to take this step, but said it was the only available mean to secure payments to its members, who will receive a government-funded salary guarantee if their employer is declared bankrupt.

"This is not a situation that any Unionen member wished for," she said in a statement, but added its action won't stop any potential financial solutions "which could come."

Metalworker's union IF Metall and The Swedish Association of Graduate Engineers earlier Monday said they would hold off bankruptcy action until an appeals court had reviewed Saab's request for bankruptcy protection.

They said Saab had intensified talks with Chinese investors over the weekend, which they hoped would improve its chances to acquire approval for a reconstruction from an appeals court.

Production at Saab's manufacturing plant has been suspended for most of the year, while the company has struggled to pay suppliers and staff.

Saab spokesman Eric Geers earlier said the company will file its appeal Monday against the district court ruling that rejected its application for bankruptcy protection.

The company had been hoping for a $344 million (€245 million) cash injection from Chinese investors Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co., that is awaiting regulatory approval.