More news tomorrow?

Reuters reports (english translation) that Saab have called in all workers for an information meeting tomorrow 7am sharp.

TTela has provided a a nice summary (english translation). There is apparently a ‘plan B’ in the works. There is speculation they may be talking with a potential Chinese partner.

We are all playing the waiting game now. Hopefully this will be resolved shortly. There are many possibilities available with a little bit of ‘outside the box’ thinking. Now is a bad time to push party politics.

Thanks Caab93Aero and Audun.

Updated: Pay back or else…

Reuters reported yesterday that EIB wants Saab to repay the loan within 90 days.

But a source familiar with the negotiations said one of the terms was that the EIB wanted Saab to repay the money it had borrowed within 90 days of the sale and leaseback deal being carried out.

Thanks to WM in the comments section for the tip.

Other media are reporting similar stories, but do not touch on the specifics.

From TTela:

Do you understand why EIB poses these requirements?

– No, it is completely inexplicable. Unless they want Saab to declare bankruptcy, says Carlström.

Update: TTela now reports that EIB wants to terminate the loan.

– We are working with alternative solutions to solve this problem. We have 100 lawyers working with the EIB-question, says Lars Carlström.

Reuters: Saab owner warns of funding

Reuters earlier today reported the following:

The funding warning from Spyker came shortly after Saab struck a deal with one of its key suppliers, International Automotive Components Group (IAC), after being forced to stop output for a third day running due to payment disputes.

Unfortunately I became aware of this (thanks to a comment here) too late to confirm this with anyone at Saab.

The latest press release on Spyker’s web site is from Marc 30th and states:

Saab Automobile has sufficient means to meet its immediate liquidity needs from existing and available sources.

The Reuters article unfortunately does not mention any sources other than the annual report.

It seems to me that the press release dated March 30th contains newer information. But even were that the case, it doesn’t mean the situation is rosy. The annual report states there is a need for further funding. It remains to see just how acute the need for immediate funding is. The focus on Antonov is nothing new and is a poor indicator to figure out how severe the lack of positive cash flow really is.

Ironically, Saab is better than average at paying their bills(thanks Gatelaw)

—-

Fred sent a link to Joann Muller’s blog entry http://blogs.forbes.com/joannmuller/2011/04/01/saab-is-running-out-of-money-and-could-collapse/.

What John is missing, as GM and its federal backers know all too well, is that it takes an awful lot of capital to run a successful car company in a highly competitive, global market. This is a lesson Saab and Victor Muller are learning now.

Nobody said it would be easy.

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