Swedish company claims Chinese investor has put new funds into it
13 December 2011

Saab claims the first payment of money needed to keep it afloat has been made.

A statement on the Saab employee website said: "Co-financing has been transferred. Saab confirms that the first payment, the funding promised by Youngman, have now been transferred to the company's account. Efforts to secure the rest of the funding required to pay salaries and continue the reconstruction is moving progressively forward."

Reports suggest Saab has until Thursday, 15 December, to present reasons why it should not be forced into bankruptcy. It is not clear how much money Chinese firm Youngman has paid, how much more is required or how long it will keep Saab alive.

The administrator handling Saab’s affairs, Guy Lofalk, has asked a Swedish district court to end the reorganisation process that is currently protecting Saab from its creditors while it tries to secure vital funding.

The court dealing with the issue has registered Lofalk’s application and is due to make a decision on 16 December. It has given Saab a deadline of 15 December to respond to Lofalk’s request, while the company’s creditors can also express their views to the court.

Saab says it will seek a continuation of the reorganisation process and ask for a new administrator to be appointed in Mr Lofalk’s place.

At the same time, Saab is still negotiating with Chinese investors to try to secure funding to enable it to pay workers’ wages and continue the reorganisation process.

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