Our Washington D.C. readers may be aware of the ongoing financial troubles of Swedish car manufacturer Saab. Troubles apparently increased for the company last April when funds ran dry about a year after the company was bailed out by a company now known as Swedish Automobile.
Over the past six months, Saab has all but halted production. Unpaid suppliers apparently stopped deliveries as far back as April, and Sweden's debt collection agency have already seized a number of company assets at the request of unpaid suppliers. Last week, there was talk that the company may be forced file for bankruptcy when workers and suppliers claiming Saab owed more than $206 million in unpaid wages.
On Wednesday, the Swedish car manufacturer presented a plan to restructure, cut costs and keep itself afloat. That plan came after the company received temporary protection from creditors' claims. According to sources, the company is currently awaiting funds from a Chinese investment that is projected to be around $336 million. The company hopes protection from its creditors will allow it to stay afloat until it receives the money in November.
Sources said employees claiming unpaid wages may be paid by the weekend, and that wages would be paid according to a state wage-guarantee.
A spokesman from the company said the restructuring will be put in place prior to the end of the year. It has not yet been determined how many employees would be let go as a result of the process.
Sources said the Swedish Automobile shares increased 30 percent after the order was issued on Wednesday.
Source: Reuters, "Struggling Saab wins reprieve, eyes job cuts," Sara Webb, Sep 21, 2011.