China-based Zhejiang Youngman Lotus Automobile has given its first payment to Saab, which is struggling to remain in business and as it has an impending court hearing this week. Saab spokesman Eric Geers confirmed that the funding has come into Saab’s accounts but he declined to specify the amount.
According to a report from Swedish business daily Dagens Industri, $5 million was given by Youngman to cover immediate tax expenses. Youngman hopes to acquire a stake in Saab. Youngman is expected to pay an additional 20 million euros ($26.43 million) to Saab this Wednesday.
This will cover unpaid salaries. However, there will be an extra 10 million euros to be given before December ends. Geers wouldn’t say if there’s more money coming but he shared that talks with Youngman are proceeding. He said that Saab is working hard to pay wages and to secure salary funding while the company is kept in reorganization.
A court is expected to hand down a ruling this Friday on whether Saab will stay in a scheme that grants it protection from creditors while it gets a stable future for itself. The administrator who was overseeing the scheme for the court has filed a motion for it to end.
Saab has been on the brink of a collapse since early 2011 when a cash crisis had forced it to stop production. Just last week, Saab’s administrator asked the court to terminate a period of creditor protection since Saab, which is owned by Dutch-listed Swedish Automobile, had run out of money. [source: Autonews]