Saab Has Enough Money until Prince Charming Arrives

Saab is getting more desperate with every day, as the company screams for help and waits for an outside investor that could keep it in business. But even so, a Saab spokesman said the Swedish automaker has enough money to survive until it has a new owner, a report by informs.

Basically, Saab currently relies on the money sourced from General Motors in February, around $150 million, with the parent company planning to inject even more funds in the Swedish unit and help it during restructuring.However, with General Motors now living under Chapter 11's umbrella, Saab won't get any more money, the source added.

Saab currently has around $90 million, which will be used to pay the most urgent debts. "We will have enough to pay salaries and suppliers, to keep operations going until we get out of reconstruction," a spokesman was quoted as saying by the Wall Street Journal.

The Swedish brand currently owed its parent company more than $1.3 billion but, according to the terms of an agreement between the two parts, Saab would only have to pay a quarter of this sum. But following GM's filing for bankruptcy, things have become uncertain.

"The money isn't there, so if the court were to demand that, they wouldn't receive it and the only thing they would accomplish is to put Saab into bankruptcy," said the spokesman. "That would be pointless. It's financially better for GM to sell Saab than to demand something they can't get."

Recent media reports are claiming that Saab should find a new owner sometimes this month so keep an eye on our news section to stay up to date.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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