Saab Gets Last Minute Payment to Help Keep it Afloat

Saab Gets Last Minute Payment to Help Keep it Afloat

In yet another twist to the ongoing Saab soap opera, the Swedish automaker has received a payment from Zhejiang Youngman Lotus Automobile as it struggles to stay solvent. The payment, which is some $5 million will be reportedly be used to cover outstanding tax expenses.

Following on from that, Youngman, which is looking to take a significant stake in Saab, apparently plans to pay out more money by the end of this week, (some 20 million euros/$26.4 million), in this case to cover unpaid salaries. A spokesman for Saab, Eric Geers, confirmed that while the first payment had been received, nothing else could be confirmed, except the fact that talks with Youngman are “ongoing.”

Saab has been struggling to stay afloat ever since it was purchased from General Motors by Spyker and it’s main assembly plant in Trolhattan, Sweden, is currently idled in the wake of unpaid bills. In recent months the firm, owned by Swedish Automobile has sought creditor protection as it looks to find suitable investors.

Youngman has repeatedly tried to buy into Saab, but the latest deal was vetoed by General Motors, which still owns licenses for Saab technology. In the meantime Saab, still under creditor protection is under increasing pressure by the administrator overseeing the process, to have it’s protection agreement terminated.

A distric court in western Sweden, has given the automaker and its creditors, until Thursday this week to submit their views regarding the matter. A final decision on Saab’s status is expected to be made on December 16th.

[Source: Reuters]