Saab is on the verge bankruptcy – at least that is what can be assumed according to latest reports. According to Bloomberg, the Swedish government is working to allow Saab Automobile to receive a commercial bank loan to avoid bankruptcy.
According to three people familiar with the situation, the loan would likely come from Bankas Snoras in Lithuania, which is controlled by Russian investor Vladimir Antonov. Antonov is looking to take a stake in Saab’s owner Spyker Cars NV.
The move will give Saab a financial lifeline after it was forced to stop production due to a payment dispute with suppliers. It was reported last week that Saab has tens of millions of crowns in unpaid bills, according to the head of a Swedish suppliers organization said.
Spyker purchased Saab from General Motors in February 2010 for $74 million in cash and $326 million in preferred shares.
– By: Omar Rana