Spyker Cars NV is in negotiations with a financial institution to sell and lease back real estate property of its subsidiary Saab Automobile, the company revealed on Monday. The funds gained from the deal will be mainly used to save Saab from the cash crunch that it is experiencing and to settle unpaid bills from suppliers.
Details of the talks were not disclosed. Spyker said that the outcome of the negotiation remains uncertain and still has to get the approval of the Swedish National Debt Office.
Spyker also did not reveal how much cash it could gain from the agreement. However, in the company’s annual report, it was disclosed that the value of the property, Saab’s Trollhatten assembly plant and equipment, at the end of 2010 was at 248.4 million euros ($357.7 million).
Due to the unpaid bills that have accumulated, suppliers refused to deliver components to the automaker. This caused the disruption of production at Saab’s factory for the past two weeks.
An organization representing the suppliers has disclosed that Saab owes tens of millions of crowns for such matter.
Spyker, which bought Saab last year from General Motors Co., has previously assured investors that the unit is not in the brink of a collapse, but is only experiencing a short-term liquidity problem. Last week, a Swedish business daily revealed that Spyker is attempting to release some of the collateral pledged on state-guaranteed loans in order to obtain the needed financing.