As the days go by without a viable solution to Saab’s worsening financial problems, the closer the company gets to its breaking point.
Today, Sweden’s public radio (Sveriges Radio) ran a report citing unnamed sources that said Saab’s parent company Dutch group Swedish Automobile NV (SWAN) was preparing to apply for court protection from its creditors. If that were to happen, Saab would be placed in a process of corporate restructuring similar to the one it entered in 2009 while GM was in control.
Later in the day, Mats Fägerhag, head of technical development at Swedish Automobile NV told the radio station, “We have not taken any decision to apply for reorganization”.
Swedish Automobile NV issued a rather vague statement saying the company is looking to secure funds and is evaluating “all available options” to “secure the continuity of Saab”.
Saab has essentially stopped production at the Trollhattan factory since April because of unpaid bills to suppliers, and while it wanted to resume building cars on August 29, the company has yet to secure funding.
The Swedish automaker was unable to pay out salaries this week due to a cash crunch. As a result, the firm’s two biggest unions, IF Metall and Unionen, stated they will most likely request a court order to put the company into bankruptcy, unless their wages are paid within the next two weeks.
SWAN Press Release
Zeewolde, The Netherlands, 26 August 2011 – Swedish Automobile N.V. (Swan) is aware of certain reports in Swedish media related to a possible filing by Saab Automobile AB (Saab Automobile) for a voluntary reorganization under Swedish law.
Swan confirms its earlier announcements that it is in discussions with several parties to secure the short and medium term funding of Saab Automobile to restart and sustain production. In order to secure the continuity of Saab Automobile, Swan and Saab Automobile are evaluating all available options. Swan will update the market in case of new developments.
