Swedish Automobile announced today that Saab has filed for protection from creditors in Swedish district court since its current financial resources are limited.
Swedish Automobile said that purpose of the proposed voluntary reorganization process is to secure short-term stability as it waits for additional funding from Pang Da and Youngman.
“As part of the reorganization filing, the court-appointed administrator will apply for the Swedish state’s wage guarantee scheme to allow wage payments to all Saab Automobile employees to be made,” Saab said in a statement. “August salaries are expected to be paid within a short time frame following the court approval. With regards to outstanding debts to creditors, Saab Automobile will seek the support of its creditors for the reorganization process and is confident it will obtain this support, particularly because Saab Automobile aims at full redemption of outstanding debts.”
“Since securing the long-term funding through conditional agreements with Pang Da and Youngman, who both support this voluntary reorganization, we have focused on securing funding to bridge the period until we receive their funds,” Victor Muller, CEO of Swan and CEO and Chairman of Saab Automobile, said. “We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared.”
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