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Saab Close to Facing Debt Collection Process

Saab is walking on the edge, as Sweden’s Debt Enforcement Agency will start a collection process against Saab Automobile on Wednesday. The bad news is that the Agency could freeze the carmaker's assets. One of the few options the manufacturer has left is to pay two of its suppliers about $620.000.

”The collection process that may start tomorrow would include investigating Saab's bank accounts and potentially also other assets," Hans Ryberg division chief at the state agency, said today according to AutomotiveNews. Among the companies that Saab must pay today in order to avoid the collection procedure are Kongsberg Automotive AB, a Norwegian manufacturer of car-seat parts, and Infotiv AB, a Sweden-based consulting firm.

The largest amount of money is owed to Kongsberg. The manufacturer has been forced to stop production since late March due to a major cash shortage. As always, the company is trying to raise more funds and expects to restart the building process in a couple of weeks. Some funds started coming in from Swedesh Automobile NV, Saab Dutch owner from selling 4 million new shares to GEM Global Yeld Fund Ltd.

"We're of course totally aware of this situation with the collection agency, but I can't comment on what we're going to do," Eric Geers spokesman at Saab as the aforementioned source relates. There were more than 100 debt claims against Saab which have been filed with the collection agency. Also, there are some companies which filed more than one claim, and eight companies proceeding ahead asking for the regulator’s involvement.
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