Saab says Chinese manufacturer Youngman is due to deposit EUR70m (US$96m) imminently as the Swedish automaker looks to regroup after securing bankruptcy protection.
The precise date of the cash injection is not yet known, but the money will be channelled into essential operations, decided by the administrator appointed to oversee Saab’s day-to-day business.
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Saab declined to be drawn on how the EUR70m would be spent apart from confining itself to noting it would “fund operations during reorganisation,” but in any case debts arising from before 21 September are not currently on the table.
“From 22 September we are going to be paying for those projects the administrator deems prioritised and are paid for very promptly,” a Saab spokeswoman told just-auto from Sweden. “We can’t amass any more debt during that time.”
“[Youngman] money is due to arrive this week – it is imminent. This is the EUR70m loan that was [accepted] shortly before we submitted the appeal to the Court.”
The Saab spokeswoman also confirmed August and September salaries had now been paid into employee bank accounts following the trigger of State guarantees that started once the automaker won its appeal in the Gothenburg Court.
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By GlobalDataSaab said it will also make up any salary once employees reach a State ceiling of SEK171,000.
“Later on down the road, when people hit the maximum on State guarantees, the company will be contributing to top that up so employees are paid normally,” said the spokeswoman.
The manufacturer has not ruled out the possibility of job cuts as it seeks to balance its books following voluntary reorganisation, although no details of any potential headcount reduction have yet been made available.
