Saab considers reorganization to hide from creditors

Posted on Tuesday, 30 August 2011 , 13:08:43 byLucia

Filed under saab-reorganisationsaab-general-motorsbankruptcysaab-processSaabEuropean

Saab considers reorganization to hide from creditors

The oncoming funding problems led the Swedish carmaker Saab to a dead end. The executives have decided to mainly focus on raising more funds in order to survive through the next several days. They are also seriously taking into consideration the idea of filling for reorganization in order to find protection from creditors. Eric Geers, Director of Global Communications for Saab, stated that they were still focusing on securing financing, remaining open to all available options in order to ensure the continued security. According to the Swedish public radio, Saab is preparing a voluntary reorganization and the manufacturer revealed that it was aware of such media reports. As a reminder, the cash shortage was one of the factors that caused the halt of production by the carmaker, which had been sold by General Motors last year. Paying wages were delayed by Saab and no activity has been registered at Trollhaetan, Sweden headquarters, since early June. Thus, devastating consequences are expected to appear as labor leaders are planning a process and they will fill a bankruptcy declaration against Saab in no more than two weeks. No good news is announced for Saab because, as a result of component supplier's request with unpaid bills, the Swedish government's Debt Enforcement Agency started collection proceedings this month.


Saab considers reorganization to hide from creditors image