Saab again hit by severe cash shortage


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Wednesday, 27 July 2011
The uncertainty about the future of the Swedish car manufacturer, Saab has increased after the company today is unable to pay its employees salaries.

Production in Trollh�ttan has stood still for a long time while waiting for green light to a Chinese capital injection to save Saab Automobile.
Swedish business daily Dagens Industri writes money that was expected to have come in from a fund based in the Bahamas, Gemini Fund, could not come into the company’s tills so the company lacked the resources to pay its workers by the end of this month once again.

The Gemini Fund stepped in with a loan to Saab but reports hold that in June the company held fast on the money as such Saab’s employees salaries could not be paid. Saab has not commented officially on the case.

Gemini Fund has ties to the Russian financier, Vladimir Antonov, who wants to go in as co-owner of Saab. Antonov Swedish press spokesman Lars Carlstr�m says that a solution for Saab's Salary may be crucial for Chinese companies wishing to invest in the Swedish carmaker.

“It is important to maintain Saab liquidity until the Chinese can get approval for the investment from the Chinese government,” says Lars Carlstr�m.

Saab awaits response from the Chinese authorities in September or October. If it is yes, then Saab's future will be secured according to Lars Carlstr�m.

In early July, it was expected that the company would avoid bankruptcy after the Chinese capital injection could resume production 6th August. But that dream was pushed forward indefinitely.

The Swedish Industry Minister Maud Olofsson said that the government is monitoring the situation closely:
“Our automotive industry is important for Sweden, above all the jobs in V�stra G�taland,” says the Minister's spokesman, Johanna Martin.
By Team

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