Saab RSVPs Regrets to Frankfurt Motor Show, Faces Debt Collectors

August 16, 2011
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Like the kid who has to miss a friend’s birthday party because he’s still contagious, Saab has announced it won’t be able to make it to the Frankfurt Auto Show.
Why, you might ask? Saab says it’s putting all of its focus on making cars. Unfortunately, it’s going to need a lot of focus: the Swedish Debt Enforcement Agency has announced it may begin the debt collection process on Wednesday and freeze Saab’s assets, unless the embattled automaker settles some of its outstanding bills.
The debt, totaling roughly $620,000, must be paid by tomorrow to Kongsberg Automotive AB, a seat manufacturer, and Infotiv AB, an advanced electronics consultant. Once that’s done, Saab must also sift through the bills piling up back at home. Roughly $792,000 is reportedly due next week, and there are more than 100 other outstanding claims against the company.Whether or not Saab will have the scratch to pay them off is unclear, but the company did sell four million shares this week to the Global Emerging Markets Global Yield Fund, an alternative investment firm in Geneva.
If the balance sheet balances, Saab will look forward to restarting its production lines in a few weeks for the first time since June, and putting forth a new 9-3 model. In the meantime, we’ll just tell Saab what we would a friend who’s under the weather: get well soon.

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