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Saab secures short term funding, pays wages

Saab's owner Swedish Automobile announced Wednesday it had secured more short-term funding with a 25-million-euro ($36-million) loan and that it has started paying out staff's salaries for June.

Saab secures short term funding, pays wages

“Swedish Automobile announces that it entered into a 25 million euro convertible bridge loan agreement with Gemini Investment Fund Limited, thereby securing additional short-term funding,” the company said in a statement.

The announcement is the third cash injection to Saab this week, for a total of 66 million euros, following a Chinese order on Monday and a deal reached Tuesday to sell and lease back its real estate.

If the funds are paid out as scheduled, “Saab Automobile expects to have secured the liquidity required to restart production hopefully within 2 weeks, subject to reaching agreement with its suppliers which includes feasible delivery schedules,” said the brand’s Dutch owner, formerly known as Spyker.

The announcement sent Swedish Automobile’s shares soaring 44 percent to €1.76 on the Amsterdam stock exchange at 1430 GMT.

Saab has been faced with a mounting liquidity crisis, with the production line stopped as suppliers halted deliveries over unpaid bills.

Last week, it announced it had run out of cash to pay its staff’s salary

for the month of June.

“But salaries are now on the way out to all personnel accounts,” confirmed Eric Geers, head of information at Saab, to news agency TT on Wednesday afternoon.

“I am relieved to report that we made the June salary payments this afternoon from the proceeds of the sale of cars we announced Monday,” Swedish Automobile head Victor Muller, who is also Saab’s sole board member, said, apologising to employees.

“We have clearly gone through a very rough patch in the past few weeks and hopefully we can now reach agreement with our suppliers so as to ensure a resumption of our production in a controlled way,” he said.

On Thursday there is a scheduled press gathering in Stockholm held by Russian businessman Vladimir Antonov, where he will give his take on Saab’s situation.

But according to his Swedish spokesperson Lars Carlström there is no special deal or solution to be discussed at the press conference.

“Everyone seems to want to see him and speak to him. We just want to relieve the pressure a little,” Carlström told TT.

Both suppliers and trade unions have recently voiced the demand that Antonov is allowed to give Saab the cash injection that the disaster-riddled carmaker needs.

Head of union Metall, Stefan Löfven, wants the government to follow the lead of General Motors (GM) in approving Antonov as co-owner.

After GM’s dialogue with Antonov they have declared themselves happy with him as a part-owner and financier.

According to TT, GM is now waiting for the Swedish government to do the same, in order for a joint approval of Antonov to be issued.

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CARS

Former Swedish Saab bosses appear in court

Swedish car maker Saab's former CEO Jan Åke Jonsson and the firm's former head lawyer Kristina Geers have appeared in court in Vänersborg in west Sweden, accused of falsifying financial documents shortly before the company went bankrupt in 2011.

Former Swedish Saab bosses appear in court
Saab's former CEO Jan Åke Jonsson. Photo: Karin Olander/TT
The pair are accused of falsifying the paperwork at the height of the Swedish company's financial difficulties at the start of the decade.
 
A third person – who has not been named in the Swedish media – is accused of assisting them by issuing false invoices adding up to a total of 30 million kronor ($3.55m).
 
According to court documents, the charges relate to the firm's business in Ukraine and the paperwork in question was signed just before former CEO Jan Åke Jonsson resigned.
 
Both Jonsson and Saab's former head lawyer Kristina Geers have admitted signing the papers but denied knowledge of the Ukranian firm implicated in the case.
 
All three suspects deny all the charges against them.
 

Saab's former head lawyer Kristina Geers. Photo:  Björn Larsson Rosvall/TT
 
Saab filed for bankruptcy at the end of 2011, after teetering on the edge of collapse for nearly two years.
 
Chief prosecutor Olof Sahlgren told the court in Vänersborg on Wednesday that the alleged crimes took place in March 2011, when Saab was briefly owned by the Dutch company Spyker Cars.
  
It was eventually bought by National Electric Vehicle Sweden (Nevs), a Chinese-owned company after hundreds of staff lost their jobs.
 
The car maker, which is based in west Sweden, has struggled to resolve serious financial difficulties by attracting new investors since the takeover.
 
In October 2014 it announced it had axed 155 workers, close to a third of its workforce.
 
Since 2000, Saab automobile has had no connection with the defence and aeronautics firm with the same name. It only produces one model today, the electric 9-3 Aero Sedan, mainly targeting the Chinese market.