Saab must pay bills by tomorrow or face bankruptcy
Saab is facing bankruptcy yet again after two suppliers started the collection process against the automaker.
Saab has once again found itself on the edge of a financial cliff as two parts suppliers have threatened to force the Swedish automaker into bankruptcy if it doesn't pay its debts by tomorrow.
Saab owes seat supplier Kongsberg Automotive AB and consulting firm Infotiv AB about $620,000, with both companies asking Sweden's Debt Enforcement Agency to start the collection process against the automaker. Saab has until tomorrow to pay its bills or face possible bankruptcy.
"The collection process that may start tomorrow would include investigating Saab's bank accounts and potentially also other assets," Hans Ryberg, a representative of the agency told Bloomberg.
Saab says it is fully aware of the situation but isn't commenting on the proceedings.
"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, a Saab spokesman, said.
Saab recently sold 4 million new shares to GEM Global Yield Fund Ltd. For $5.8 million, but the automaker will need more cash on hand to stave off bankruptcy. More bills -- to the tune of $792,200 -- are due next week and the automaker has yet to restart production at its main Trollhattan plant.
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