IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Monday, September 19, 2011

SEK 640 million from Youngman by the end of this week?

Today the Court of Appeal for Western Sweden will most likely decide whether to look into Saab's reconstruction appeal or not. If the court chooses not to, then the bankruptcy hearings next Monday will be Saab's next stop. But now Dagens Industri reports that Youngman has promised to contribute SEK 640 million by the end of this week, which would take care of the bankruptcy threat and make next Monday's hearings a formality.

These SEK 640 million is probably the EUR 70 million loan Saab announed last Monday. But this loan has been reported to be conditional to Saab being allowed a reconstruction. Now it looks like this condition may have been lifted.

According to Dagens Industri, half of the SEK 640 million is supposed to be wage payments for August, September and October. The first wage payment is planned for next Monday, which would take care of the bankruptcy threat from the labor unions.

Last week we got reports that also the Japanese supplier Takata-Petri has asked the court to declare bankruptcy in Saab. These hearings will most likely be held a couple of weeks from now. The question is if Saab can come to an arrangement with this supplier outside the court.

The remaining of the SEK 640 million once the money for the wages are put aside, can be used to pay suppliers. This would cover about 25 per cent of Saab's due debt, and one can hope that this will be enough for Saab to reach agreements with both the Japanese supplier, as well as the suppliers which has gone to the Swedish Debt Enforcement Agency with their demands.

But first let's see if the Court of Appeal will look at Saab's reconstruction case. A decision is expected this afteroon, or possibly tomorrow.