Saab could face legal bankruptcy if it is unable to pays its debts
19 August 2011

Sweden's Debt Enforcement Agency has started the process of recouping debts owed by Saab Automobile.

The debts, totalling around £375,890, are still owed to two parts suppliers by the ailing car manufacturer.

Saab owe the amount to Norwegian car seating manufacturer Kongsberg Automotive AB and Infotiv AB, a Swedish consulting firm.

''We've just begun by looking at what kind of bank accounts they have and what kind of collateral there might be" said Tommy Barkman, a case worker at the Debt Enforcement Agency, talking to 'Automotive News'.

A further £479,157 is owed to other suppliers by Saab over the next week, according to the debt authority.

The collection process will likely take one to three months, though the car manufacturer can halt it by paying off its debts. The Swedish Tax Authority could force Saab into legal bankruptcy if they are unable to pay.

In recent months Saab has been struggling to pay its staff and suppliers. Car production was stopped in April and restarted in June but quickly shut down again and has not yet resumed. The company hopes to resume production soon.

Read about Saab's failure to pay its workers wages

The company has pulled out of the Frankfurt Motor Show as it was “not considered an appropriate use of resources.”

Read more about Saab and the Frankfurt motor show

Sam Naylor

See all the latest Saab reviews, news and video

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