Union stopped its bankruptcy process against Saab after firm paid its workers

Article by Christian A., on August 4, 2011

As Saab’s workers got their delayed salary last Friday, a white collar Swedish union halted its bankruptcy process against the carmaker, according to a union representative. Swedish Automobile, Saab’s owner, said last Wednesday that as an effort to raise cash, it entered a deal for GEM Global Yield Fund Ltd. to acquire about 5 million new shares to give it a 17% stake.

In a Reuters’ interview, Anette Hallengren of the Unionen union confirmed that their wages were already paid and that the union had put a stop to a process to ensure that staff gets their salary even if the company goes bankrupt.

Last July, Saab was able to settle with a supplier. This marked the first time that it fended off a bankruptcy claim.

A few days after, it was revealed that it can’t pay nearly half of its workers since a portion of the funds that investors had committed to provide wasn’t given in time. Saab had to stop production last April as suppliers halted delivery of parts when the automaker failed to settle their bills.

When it was reported that a new U.S. investor may sign up to help Saab, the shares of Swedish Automobile climbed by 28% last Thursday. Sources told Swedish publication Dagens Industri that a "big American investor” wants to become a part owner in Saab Automobile, a move that will raise opportunities for the factory to resume production.

Topics: saab, bankruptcy

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