Factory sale may hold key to Saab's future
TT/The Local/gm · 25 Jun 2011, 10:52
Published: 25 Jun 2011 10:52 GMT+02:00
- Holding back wages 'last resort': experts (23 Jun 11)
- Saab lacks funds to pay staff wages (23 Jun 11)
- Saab to staff: go home for two more weeks (21 Jun 11)
Saab representatives hope that the sale of the factory premises will bring in a vital cash injection which would allow them to get production running again and pay staff salaries.
Should a sale go through, it could raise up to 300 million kronor ($46.1 million) and provide a vital lifeline for the company. Staff were told the day before Midsummer that they would not receive their monthly salary on Monday.
“I cannot say anything more than that we're working on it,” said Saab spokesperson Gunilla Gustavs.
It had been hoped that the sale would be concluded before the salary run, but it soon became evident that it wouldn’t be the case as the negotiations dragged on. Hemfosa leads a consortium, including insurance giant Folksam and The Fourth Swedish National Pension Fund (Fjärde AP-fonden).
Jens Engvall, president of Hemfosa, told Dagens Industri, “It is a difficult matter and we need to get an idea of how credible it is that Saab will survive in a reasonable way. We also need to understand how the agreement with Pang Da and Youngman looks and how the EIB system works. This has meant that it took a little longer than a normal real estate business".
Meanwhile, on a more positive note, a representative of Da Pang said in an interview with Bloomberg News that the company is still willing to go ahead with the deal with Saab.
“Our previous plans will not change. Saab has temporary financial difficulties but the problems are not fundamental,” said Wang Yin, secretary of the board of Pang Da.