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Another Saab Story: New Owners Narrowly Sidestep New Bankruptcy.

National Electric Vehicle Sweden now seeking partners.

by on Aug.19, 2014

NEVS was able to restart the Saab plant for only a matter of months, producing about 6 cars daily.

It might seem like a comedy routine if it weren’t so deadly serious; the company that bought filed Swedish automaker Saab out of bankruptcy itself averted its own financial collapse this past week and is now frantically seeking a new partner to keep the operation going.

A Chinese-controlled coalition, National Electric Vehicle Sweden hasn’t produced a car at Saab’s Trollhattan plant since May and was being threatened by an unpaid supplier ready to force it into bankruptcy  – echoing what happened to the Dutch firm that previously tried to rescue Saab.

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“The company does not have enough liquid cash today to pay all outstanding debt, but NEVS’ assets are larger than its debt,” the new Saab owner confirmed in a statement. “NEVS cannot say exactly when, but NEVS’ suppliers will get paid.”

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Saab Leaving Most Debts Unpaid

Only a select few likely to get cash back.

by on Apr.12, 2012

Among the assets of the now insolvent Saab: the Phoenix Concept car, (Photo by Len Katz).

The factory in Trollhattan stands idle but the bookkeepers and bankruptcy attorneys have been keeping busy in recent weeks trying to tally up the debts owed by the now-insolvent Saab Automobile and compare that to the company’s few remaining assets.

The math doesn’t work out well for those Saab owed money to.  The final balance sheet shows assets of $532 million (3.6 billion Swedish kronor) but debts of $1.9 billion (13 billion kronor).  It is possible that the tally will look more favorable, however, if the trustees overseeing Saab’s bankruptcy are able to find a buyer – with as many as seven bidders reportedly looking closely at the company.

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Nonetheless, the bottom line isn’t a good one: a lot of folks looking to recover money from the doomed maker are likely to wind up with nothing.  Among those least likely to come out whole are Saab’s Swedish employees.  They actually pressed for the bankruptcy filing in hopes of recovering months of back pay.  Those workers are owed $89 million.

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Saab Sinking Fast

Maker faces threat of asset seizure.

by on Aug.18, 2011

Photo by Len Katz.

Production of the Saab 9-4X continues but the rest of its line-up is on hold.

Things look great for Saab – at least on paper, the struggling Swedish maker haven’t lined up an assortment of investors promising to pump $100s of millions of dollars into the company – but the reality is far more bleak.

With unpaid suppliers increasing pressure to get Saab to pay the $625,000 they’re owed, the Swedish Enforcement Agency is warning it may begin legally seizing the carmaker’s assets.  That would be a very likely prelude to the collapse of the company, which has been struggling to re-open its headquarters factory in Trollhattan since partsmakers began a boycott in March.

With the factory that produces the flagship 9-5 model, as well as the smaller 9-3 idled, dealers around the world have been running short of product.  And Saab’s coffers continue to drain since its revenue stream begins the moment products roll off the line.

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The company desperately needs a “major automotive partner,” asserts IHS Automotive analyst Aaron Bragmann, but there is no one likely to come to Saab’s rescue at this point, he contends, a position most other analysts echo.

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Saab Lines Up $40 Mil Deal to Pay Down Debt

Maker hoping it can soon re-start idled assembly plant.

by on Jun.28, 2011

Saab's factory could soon be running again - or so the automaker now hopes.

The cash-starved Swedish automaker Saab continues lining up funding that it hopes will permit it to pay off mounting debts and re-start its idled assembly plant.

A day after revealing that an unnamed Chinese company will acquire $18.4 million worth of Saab vehicles, the maker says it has a tentative leaseback deal in place to sell a majority stake in its Saab Automobile Property unit, which owns the Trollhattan plant and additional assets.  The deal, worth an estimated $40 million, could help Saab not only meet the payroll it missed last week but also cover unpaid bills claimed by its parts suppliers.

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Those vendors have been boycotting Saab since March, compounding the company’s already severe financial problems.

The latest deal would transfer a 50.1% stake in Saab Automobile Property to the Swedish real estate company, Hemfosa.  Saab’s parent, Swedish Automobile, would then sign a 15-year agreement to lease the Trollhattan plant and other facilities.  Hemfosa will also have the right to increase its stake in the property company by buying $7 million worth of shares.

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