Saab Considers Reorganisation to Hide from Creditors

It looks like there is no way out for Saab as it finds itself facing a dead end, due to its oncoming funding problems. Thus, the car manufacturer decided to primarly focus its attention on raising more funds to make it through the next several days. The automaker is also considering the option of filling for reorganisation in order to protect itself from creditors.

"We're still focusing on securing financing. But in order to ensure the continued security of Saab, we remain open to all available options,"
Eric Geers, Director of Global Comunications for Saab was quoted as saying by Automotive News.

The manufacturer revealed the fact that it is aware of media reports saying that Saab may be planning a voluntary reorganisation. Also, the Sweedish public radio aired that Saab prepares such a court filing, as reported by the aforementioned source.

The carmaker, which was sold by General Motors last year, had suspended its production process in late March, due to a cash shortage. Thus, the carmakers facililty at Trollhaetan, Sweden headquarters, has been quiet since early June. Moreover, the car manufacturer delayed paying wages, being the third consecutive postponement in as many months. As a result, labor leaders are aiming for a process that may have devastating consequences, given the fact that they will fill a bankruptcy declaration against Saab in two weeks.

This might come as another devastating hit for the carmaker, as the Sweedish government’s Debt Enforcement Agency started collection proceedings this month.The procedure came as a result of component supplier’s request with unpaid bills.
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