Saab’s cash crunch is nothing new, but the matter is finally coming to a head. The car maker’s first bankruptcy hearing is scheduled for September 26.
In the meantime, it’s business as usual for Saab. Lately, that has been less about turning out autos or paying its workers than it has been outright fund raising. Earlier this week, Saab announced Chief Executive Victor Muller and his crew had orchestrated Chinese financing to the tune of about $95 million.
That was strictly bridge money. For Saab’s owner, Swan Automobile, concerns and debts run much deeper. Supplies, production and even salaries have been inconsistent. After delays in receiving pay for June and July, with August’s yet to be paid as of this writing, two white-collar unions initiated the bankruptcy proceedings to qualify for government assistance.
[Reuters]