Saab to avoid bankruptcy with a new loan? image

Saab Automobile, the cash-starved Swedish carmaker, is close to securing a loan of about 1 billion kronor (US$157 million) to pay overdue salaries and avert a looming bankruptcy, three people familiar with the matter said.

The company is facing a tough situation at Saab which is struggling to find funding. The automotive manufacturer delayed staff wages for a third consecutive month and production at its plant in Sweden has stopped because it has not paid suppliers.

“We’re still focusing on securing financing,” Eric Geers said in a phone interview today. “But in order to ensure the continued security of Saab, we remain open to all available options.”

According to reports from a source within the company, the Saab executives are continuing to stay optimistic about the future and about their ability to raise enough money within the coming week in order to remain afloat.

However, Saab Automobile’s two biggest unions said they’re likely to ask a court to put the cash-starved Swedish carmaker into bankruptcy in about two weeks unless salaries are paid by then.

The company, which had been scheduled to publish its second quarter results Friday, announced earlier in the day that its earnings statement would be delayed for nearly a week and would be published next Wednesday.