Saab production will remain on hold until it obtains funding to pay suppliers

Article by Christian Andrei, on April 12, 2011

Spyker Cars NV said on Tuesday that production at the Saab unit will remain on hold until there are funds to pay its suppliers. Talks are ongoing with several parties on getting additional medium-term and short-term financing for Saab.

The subsidiary, which employs about 1,200 production workers and can produce around 200 cars a day, has halted its operations since last week due to unpaid bills. Its suppliers have refused to deliver.

According to the company, Saab will be able to resume its operations normally within a week once it obtained the needed finances to pay the unpaid bills. Spyker has previously assured investors that the subsidiary was just experiencing a short-term liquidity problem and is not on the verge of a collapse.

The company also disclosed that it has requested the Swedish National Debt Office (NDO) to release its pledge in the shares of Saab property, which will be used to obtain additional funds.

Outcome of the discussions remain uncertain and is subject to NDO’s release. The company added that it expects to come up with detailed information by Thursday.

Last Monday, Spyker revealed that it is attempting a sell-and-leaseback deal on Saab’s real property to raise the needed funds. In addition, Vladimir Antonov, a Russian businessman, has showed interest in investing in Spyker’s subsidiary.

Topics: saab

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