On days like these it’s pretty hard to keep your lifestyle healthy. Too many cigarettes, too much coffee…
As we heared now the issue seems to be solved though we most likely won’t hear an official statement from the court before Monday. I’d like to share my thoughts about todays events.
The basics are quite clear: supplier Swepart Tools AB filed for bankrupcy of Saab Tools because their bills have not been paid. This is something you can do if you don’t think there is another way to get your money. As it looks like it worked out for Swepart one might think that others will follow. But I tend to disagree.
Filing for bankrupcy of a debitor is a dangerous thing. You only do it if you think that the company has quite a bit of money so that in an insolvency a huge amout of the debts will be paid. But normally that’s not the case. From my own experience I can tell you that the usual percentage of the debts you get from the administrator is somewhere in between ten and fifteen percent. Given that much of Saabs assets are colateral for the state gurantee/EIB loan it might even be less. Not very attractive. Especially for larger suppliers it’s much better if Saab survives and pays back the whole amount, even if it takes a few weeks longer. On a longer perspective those suppliers would want to sell parts to Saab again. They may demand certain terms of payment. But they want to get their bills paid and future business and they will only get that if Saab starts production again.
Of course suppliers want to be safe. They will ask for payment on delivery. And they want to see a solid plan for mid term financing and a fixed date for the payment of the old debts. We surely can’t blame them for that. As the CEOs of Plastal and Kongsberg said today they will keep negotiating, see what Saab has to offer after the summer break and examine if it is enough to start again. Keep calm and carry on. They don’t supply right now so the debt is not raising so they can wait and see. Not forever but for another two or three weeks.
So let’s keep calm and carry on. And hope that Saab is able to make the suppliers a good offer after the summer holidays.
Well said! And surely no creditor supplier would also wish to crystallize their losses in light of the possibility of the Chinese cavalry riding to the rescue this autumn, when they stand to be fully satisfied?
I tend to agree with most of that, it was quite balanced. However the bottom line is whether or not there is a chance that Saab survives, and by now by now very few believe in that.
I have seen all this from a very close distance a couple of years ago when I worked at a company in many ways very similar to Saab (also very different in other ways). In our situation it was some big customers who were very happy and dependent of our products. Nevertheless, when the faith was gone everyone tried to get as big bites as possible of the left overs.
On the good side, I can say this was the best that could happen for all of us. Except for the former CEO perhaps because he became suspected of several illegal actions even though it never became possible to get him personally in the end.
Just saw this:
107 SVT Text Friday, July 22, 2011
HOME Published July 22
Bankruptcy petition against Saab remains
Company Swepart in Tyringe left
on Friday in a konkuransökan against
Saab Tools for unpaid debts
five million dollars.
Saab Automobile Information
reported in the afternoon that the parties
agreed on a payment plan
and that the bankruptcy petition drawn to-
bake, but it is contradicted by Swepart
CEO Lars Thunberg.
He says to Sydnytt to bankruptcy
request remains until he received a
acceptable payment plan from Saab.
-Not earlier than Monday, I can withdraw
my request for bankruptcy, he says.
http://svt.se/svttext/web/pages/107.html
Yes, It has already been mentioned in comments.
I don’t think it changes much as I am quite sure that he will receive an acceptable payment plan on Monday.
Just like the wages will be paid, eliminating that risk.
For now there will be relatively quiet from the suppliers and others.
There will still be things popping up vreating big headlines, but as far as I can see most major suppliers are satisfied at the moment.
Lets see if they will stay that way
Please beware, google translate is not a currency converter, in that sense that it only translates the currency name to that of the output language, but it does NOT calculate the true amount . So fem miljoner kronor comes out of google translation as five million dollar, or Euro’s depending on what output language you choose, while in fact it is far less!!! Around 600.000 US$ if I’m correct. Take care with that, because wrong stories are all to easily spread, and so much harder to kill.
You’re incorrect. 😉
It is – as I wrote – approx.: $938,000.-
Cheers!
Well, the point is clear, never copy=past from google translate when amounts of money are mentioned in different currency… 🙂
Thta’s incorrect! It’s 5.917.425 SEK. Which equals to: $938,000.-
Cheers!
Too many cigarettes +1, too much coffee?….you mean scotch right?
Nah, no Scotch. Was too early as the news broke. 😉
It is ironic really, that Swepart (Novacast Group) itself was in administration earlier this year.
It is the new owners that have bought the company from the administrator, who are trying to Bankrupt Saab tools.
Obviously the new owner bought the company including it’s old debts (ie Saabs) then chases the debt.
In another post a link shows this case:
https://docs.google.com/viewer?a=v&q=cache:09fYNkQcm8MJ:www.novacastfoundry.se/openpage.asp?id%3D1216+Swepart+AB+bankruptcy&hl=nl&gl=nl&pid=bl&srcid=ADGEESgxe3udfnJeljhARxBGDmoDCTWZ854LEOKAv3UozlL5MCG7DMBjZRVcV92Fyc-HyZGTuXKXDAorm3rFREFT4wc7RBqwdy-MCxkGIxigX1-WA0Wew7Dt8kcPHIi3p9qfCUqSUNOB&sig=AHIEtbTjfx1zAFbtytrZ-Ei73XZzgbKjpw
Lars Thunberg, may be the big man now, but sometimes what goes around…etc, etc…!!
@ Till…..Its friday… have a few drinks and relax. and to everyone else…. rest easy and enjoy the weekend!
+1 … and be sure to enjoy your Saabs!
Radio turned off all the way home today to hea my baby whistling at me. 🙂
Griffin Up!
Saab Up!
I want some good news. 🙁
Couple of days on and this this news has me think more as not why but the significance.
Whether we like it or not the facts seem more an more clear that SAAB has been in treading water for some time now and although there is a financial life raft in the distance, Saab is tired. It seems there are enough sharks in the water who want a piece of Saab but there’s certainly not enough to feed them all. One always lives in hope that we will have a happy ending to all of this but the reality is SAAb currently is broke. If they had the finances they would of paid all the suppliers by now and we would be looking forward to a production restart. This however isn’t the case and certain suppliers big or small are hindering production restart. Saab can post what they like on their newsroom blog about holidays but skepticism seems for evident than ever from suppliers.
What happened on Friday to me seemed justified by a small company struggling to stay afloat. I’m sure many telephone calls were made to SAAB about payment and the consequences should monies not be paid by the deadline date. I have no factual evidence to back this up but anyone with experience in Sales and Purchasing knows you just don’t immediately seek legal methods until all other avenues have been exhausted. So it makes me come to the conclusion that Saab have been playing yet another game of “call my bluff”.
This whole comment leaves a bad taste in my mouth as I write it but one has to wonder exactly how far up Sh!t Creek is SAAB and do they have a paddle? With any real insight into Saab’s finances everything is pretty much circumstantial but if I was in the same position and had the money, I’d doing everything in my power to stop yet another press field day, yet with Saab; the hits just keep on coming.
I don’t have the time to think of possible solutions at present but maybe over the next few hours I’ll find a bit of time and produce something a bit more constructive.