Swedish Automobile Issues Subscription Notice Under GEM Facility image

Saab announced on Wednesday that it issued a subscription notice for 5 million shares under the current EUR 150 million equity facility between Swan and GEM Global Yield Fund Limited.

The exact number of shares to be issued and the price thereof will depend on a 10 day pricing period, which commences today.

Saab Automobile AB (Saab Automobile) expects to be able to pay the wages of its white-collar workers still this week. Swan and Saab Automobile continue their discussions with parties to obtain further short-term funding to be able to restart and sustain production.

Saab is still offline for the second month and was unable to pay salaries. The delay for July affected white collar workers and managers represented by the Unionen trade union.

In June it was production line workers in the IF Metall union who were forced to wait several days for the wages to be paid.

Total wages owed by Saab to its employees for July could be as much as SEK55m (US$8.7m) according to one of the automaker’s major labour bodies.

Iconic Swedish brand Saab was saved at the last minute at the beginning of 2010 when it was bought by small Dutch firm Spyker from US giant GM.

The new owner had big ambitions for Saab but the carmaker has since then lurched from one cash crisis to another.