Most liked posts in thread: RIP SAAB?

Now they are just piling on...

STOCKHOLM -- Swedish union IF Metall said on Thursday that it could demand Saab be declared bankrupt within days after a court rejected the carmaker's request for protection against creditors.

"We will now thoroughly analyze the new situation. If the company doesn't find another solution or files a bankruptcy request themselves, we may be forced to do that in the next few days," Stefan Lofven, head of blue collar-union IF Metall, said in a statement.

IF Metall has some 1,500 members working at Saab.

White-collar union Unionen, with some 1,000 members at Saab, said it saw several reasons to act fast.

"We will make a decision now" on whether to demand Saab bankruptcy, Martin Wastfelt, chief lawyer at Unionen, said. "It's all about minimizing the risks to secure our members' money."

Saab employees have not received their August wages and Saab needs to be declared bankrupt or be granted protection from creditors for a government wage insurance scheme to kick in.

The automaker is still struggling to pay suppliers who refused to provide parts before receiving payment for outstanding bills. As a result, production at Saab's Swedish plant has been at an almost continuous standstill since April.

On Wednesday, Saab CEO Victor Muller said the cash-strapped automaker currently owes 150 million euros ($210 million) to suppliers.

Muller, who is also CEO of Saab parent Swedish Automobile NV, added that it was the firm's goal to pay its creditors in full.



Source - http://www.autonews.com/apps/pbcs.dll/article?AID=/20110908/ANE/110909876/1496#ixzz1XNBhZWRe

 

SAAB Gripen Fighter

 

TROLLHATTAN - Saab lurched further into crisis on Monday as two of the carmaker's own unions served bankruptcy applications despite the company having conjured up a promise of 70 million euros ($96 million) in vital financing.

Two white collar unions at Saab, whose members had their June and July salaries delayed and have not yet got their August pay, said their patience had run out and that they were using their right to apply to put Saab into bankruptcy.

"This is not a situation that any member of Unionen wishes to be in," said Cecilia Fahlberg, chairwoman of the union, after the application.

The move came after Saab announced the latest in a long line of money-raising exercises led by Chief Executive Victor Muller, saying it had arranged the 70 million euros in bridge finance with the help of a Chinese guarantee.

The move was aimed at buying some time as the company, based in Trollhattan in western Sweden, seeks court protection from its creditors.

The 60-year-old carmaker, owned by Dutch-listed Swedish Automobil, has staggered from one crisis to another in the last few months after running out of money. Its production line is halted and it owes money to suppliers and staff.

Bankruptcy decision in weeks

Unionen, which represents 1,100 Saab staff, said the court would take three to five weeks to decide on the bankruptcy application for Saab, which Swedish Automobile, then called Spyker, rescued from closure by General Motors in early 2010.

A smaller white collar union, Ledarna, representing 126 people, also handed in an application. Both organizations say it is the only way to ensure that a state scheme to pay salaries of employees of companies in trouble will be activated.

"We think that this is necessary to secure our members' salaries. Our members have not had their money and so we cannot take everything on trust and hope," Unionen chief lawyer Martin Wastfelt told reporters.

The union stressed the application would be dropped if Saab paid the salaries. If Saab won an appeal to get protection from creditors, the bankruptcy application would also fall, it added. Unionen said it would also cooperate to help Saab win the appeal.

The main blue collar unions have said they would wait with their bankruptcy aplications.

Saab meanwhile confirmed it would appeal a court ruling rejecting its application for protection from creditors while it secures its long-term future and raises short-term financing.

New money 'not enough'

The new money raised by Saab came from a technology licence agreement with a special purpose vehicle, or SPV.

As part of the deal, Chinese car maker Youngman has also signed a technology licence deal with the SPV, providing a guarantee for its payment.

Swedish Automobile said the deal was part of a bridge loan which it intended to repay with proceeds of the 245 million euro equity investment promised by Chinese partners Pangda and Youngman.

That investment still needs permission from the Chinese authorities.

David Tomic, economist at Dutch shareholder group VEB, said the Chinese deal could help to get court support for creditor protection, but was likely not enough.

"This is to show they have done everything possible to get money. This will be ammunition in the court case, but it won't be enough if all the suppliers combined already claim more than 100 million euros in bills," Tomic said.

Muller said last week Saab owes suppliers 150 million euros.

"As a company it is hard to keep alive. If you look at the man (Muller), he has shown in the past (he has tried) to keep a company going using all kinds of tricks," Tomic said. "Muller may still bring in support from somewhere."

Source: Reuters

 

SAAB continues to scream out "But I'm Not Dead Yet!" to anyone that listen.

While the unions and creditors are looking to lop the head from the body to get what ever might be inside the beast SAAB went back to court to fight.

Follow the bouncing kronor....

SAAB says it has secured a bridge loan worth $96 million from a heretofore unknown legal entity known as Specialty Purpose Vehicle. Zhejiang Youngman Lotus Automobile (which we'll mention again in the next paragraph) has signed an agreement with the aforementioned SPV to license certain technologies from the legal entity.

This $96 million bridge loan would supposedly be paid back by the $352 million deal that SAAB had previously signed with Chinese partners Pang Da and Youngman – and yes, that's the same company that is apparently licensing technology from SPV under this latest agreement.

My head is spinning!!