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Saab Automobile AB's creditors Wednesday approved the automaker's proposal for settling its debts by paying 25% of what was owed.

Court secretary Ingrid Lund at Vanersborg District Court in Sweden, which is handling the case, told Dow Jones Newswires that all creditors apart from the Swedish Tax Agency had approved the plan.

She said the proposal thereby had gained approval from more than 75% of the creditors and of creditors representing at least 75% of the total debt, as required.

Saab previously proposed to settle its debts by paying 25% of around 10.5 billion Swedish kronor ($1.34 billion) owed to more than 600 creditors, including auto suppliers and the Swedish government.

The vast majority of the debt, almost SEK10 billion, was owed to General Motors Corp. (GMGMQ), which Tuesday said it has agreed to sell Saab to Swedish supercar maker Koenigsegg Group AB for an undisclosed sum.

"Writing down the debt has always been part of the plans" to attract a buyer for the car maker, Saab spokeswoman Gunilla Gustavs said Tuesday.

GM's agreement to write off 75% of Saab's debt implies a reduction of around SEK7.5 billion that would otherwise have been assumed by the buyer.

Saab had expected the accord plan to be approved since GM, which supported the proposal, held over 90% of its debt and since the company had gained approval from over 80% of the creditors ahead of Wednesday's decision.

The Swedish automaker, which entered bankruptcy protection in February, had asked creditors to support its proposal, arguing that they would likely end up receiving at most 15% of what they were owed if Saab was forced into bankruptcy.

GM itself filed for protection from its creditors earlier this month.

Company Web site: www.saab.com

-By Gustav Sandstrom, Dow Jones Newswires; +46-5451-3099; gustav.sandstrom@dowjones.com