More Saab suppliers preparing to demand Swedish Automobile be declared bankrupt

Article by Christian Andrei, on August 12, 2011

Swedish Automobile, which owns the struggling Saab, is expected to soon face demands from several European suppliers for it to be declared bankrupt. According to an auto industry group, these suppliers are hoping that this threat will force the carmaker to pay the debts.

Last April, Saab’s production had to stop since it didn’t receive the parts required to build the cars. The unpaid suppliers decided to stop the delivery of the components.

Saab was rescued from bankruptcy by Swedish Automobile in 2010. In a Reuters interview, Lars Holmqvist, head of the European Association of Automotive Suppliers, said that a bankruptcy request is presently being prepared by Spanish auto panels maker Matrici S. Coop, with a claim of 2 million euros ($2.8 million).

Last July, Saab entered a settlement with SwePart Verktyg AB, foiling a demand for one unit to be declared bankrupt. Holmqvist said that while some companies are waiting patiently, some have received partial payments.

He said that some German companies have contacted him to say that Saab owes them over 5 million euros each and that they are planning to start the process immediately to demand bankruptcy.

According to Saab spokesman Eric Geers, the company is “working very hard” to solve the matter and to establish a more stable financing in place.

Geers added that Saab seeks a deal with all suppliers so that stoppages will be avoided. The automaker is reported to be in talks with potential investors but their identities have yet to be revealed.

Topics: saab, bankruptcy

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