Facing increasing pressures over unpaid bills Swedish Automobile, the parent of cash-starved Saab, has filed for voluntary reorganization under Swedish law. The move, a last-ditch attempt to buy time while it raises much-needed funds, is an alternative to a bankruptcy filing that might have led to the collapse of the troubled carmaker.
Effectively a self-managed reorganization, the move is aimed at working out plans to pay worker salaries as well as bills owed Saab suppliers and other vendors. A senior company official said the 90-day process could also see Saab resume production at its headquarters assembly plant in Trollhattan, Sweden. That factory has been idled since it was struck by a supplier boycott in late March.
“This gives us some stability” while efforts are underway to raise some desperately needed cash, Tim Colbeck, President and COO of Saab Cars North America, or SCNA said in an interview with TheDetroitBureau.com. The reorganization, he noted, only affects Swedish Automobile and some of its key subsidiaries in Sweden. Sales operations in North America and the U.K., among others, are not directly impacted.