Report: Saab hoping to secure $157M bank loan, posts $324M first half loss

[Haltech]

Filed under: Saab, Earnings/Financials



Saab is against the ropes, it's the bottom of the ninth with two outs, fourth and goal and [insert other cliched sports analogy here]. The struggles faced by the Swedish automaker have been a constant news item for a long time now - Business deals went south, and the automaker has since been on a downward spiral of collections claims, angry suppliers and unpaid employees. Now comes more news from Trollhättan, and it's a bit of a mixed bag.

The bad news for Saab is that it just posted a first-half loss of $324.4 million for 2011. Beyond the loss, the automaker's working capital fell to negative $548.9 million. (And you thought your account was in bad shape for being $10 in the red due to that stupid overdraft charge.) Interestingly enough, sales are up 33 percent year-to-date compared to last year, but it's not enough to overcome the idling plants and unpaid workers and suppliers.

Good news may arrive today, however, in the form of a $157 million bank loan. Mum's the word on which bank plans to pony up the dough, but insiders say it's one of the top five banking institutions in Europe. This money will be used to pay suppliers and employees, and also to restart production. It won't last forever though, and Saab sees this potential cash infusion as a way for it to survive until its Chinese investors are approved.Saab hoping to secure $157M bank loan, posts $324M first half loss originally appeared on Autoblog on Thu, 01 Sep 2011 13:01:00 EST. Please see our terms for use of feeds.



Permalink | Email this | Comments





More...