Report: Saab has sufficient funds to survive until is sold
By Andrew C., 27 Aug, 2010. 0 Comments
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Reports are saying that Saab has sufficient funds to continue its operations until a new owner comes. Last February, GM, the parent company of Saab, has injected $150 million into the company to assist it while it was in the process of restructuring. With the filing of bankruptcy protection by GM, however, Saab cannot expect any more help from the parent firm. The reports say that at the moment Saab has $90 million (79 million pounds) in reserve cash. That's enough money to pay salaries and suppliers until the carmaker gets out of reconstruction. The threat that Saab will be in danger if GM applies for bankruptcy protection has been laid to rest with this report. Saab has proposed to pay all debtors about a fourth of what they owed GM, which is about 827 million pounds. Although GM has approved this proposal, the filing of Chapter 11 has caused fears that the US courts currently in-charge of administering the company will not honor that agreement. [via autocar]
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