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SAAB CASH CRISIS

SAAB

Supplier applies for Saab subsidiary bankruptcy

A supplier to Saab subsidiary Saab Automobile Tools has applied for the firm to be declared banktupt, according to a Reuters report.

Supplier applies for Saab subsidiary bankruptcy

An official at Vänersborg District Court in western Sweden has confirmed that an application was filed by SwePart Verktyg AB for Saab Automobile Tools AB to be declared bankrupt.

“There is a claim that is not regulated,” said Swepart Verktyg chairperson Lars Thunberg on the decision to apply to the court.

“Many of us are in the same boat. And what can you do when the other party does not get back to you?”

According to Thunberg, the claim is for a total of 5 million kronor ($800,000). He added that Saab had repeatedly assured the firm that the liability would be met, with the last promised deadline on June 2nd.

When the payment had not arrived on June 8th, Thunberg and Swepart Tools lost patience with the beleaguered car maker.

“It broke my trust,” Thunberg said.

“I do not want them to go out of business, that you have to understand, for it would be terrible. But for us, who are a small company, this constitutes a lot of money.”

Saab Tools and Saab Parts were formed in order to facilitate guarantees for loans from the European Investment Ban (EIB).

The subsidiaries have lent a total of at least 800 million kronor to Saab Automobile, according to the local Göteborgsåposten daily.

Saab Automobile is the sole owner of Saab Automobile Tools AB and the application is the first to be filed against a Saab firm.

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NORWEGIAN

Norwegian’s subsidiaries in Denmark and Sweden go bankrupt

The struggling low-cost airline Norwegian has reported its staffing subsidiaries in Denmark and Sweden have filed for bankruptcy, meaning roughly three quarters of its pilots and crew will lose their jobs.

Norwegian's subsidiaries in Denmark and Sweden go bankrupt
A Norwegian Air Shuttle plane: Photo: Norwegian

In a press release issued on Monday afternoon, the airline said that the financial support packages offered by the Swedish and Danish government had not been sufficiently generous to keep the subsidiaries which employ pilots and cabin crew in the two countries solvent. 

”The impact the Coronavirus has had on the airline industry is unprecedented. We have done everything we can to avoid making this last-resort decision and we have asked for access to government support in both Sweden and Denmark”, said Norwegian's chief executive Jacob Schram in the statement.  

“Our pilots and cabin crew are the core of our business and they have done a fantastic job for many years.”

“It is heart-breaking that our Swedish and Danish pilot and cabin crew subsidiaries now are forced to file for bankruptcy, and I’m truly sorry for the consequences this will have for our colleagues,”  Norwegian's chief executive Jacob Schram said in the statement.  

“We are working around the clock to get through this crisis and to return as a stronger Norwegian with the goal of bringing as many colleagues back in the air as possible.”

The company said it was also immediately ending staffing deals with the OSM Aviation, which supplies it with crew based in Spain, UK, Finland, Sweden and the US.

The company said that 1,571 pilots and 3,134 cabin crew would be affected by the move, with only the 700 pilots and 1,300 cabin crew based in Norway, France and Italy being kept on.

In the release, the company blamed the “the lack of significant financial support” from the Swedish and Danish governments, which it contrasted with that of Norway, which has agreed to pay “all salary related costs” while staff are furloughed. 

The companies declared bankrupt include: 
 
Norwegian Pilot Services Sweden AB
 
Norwegian Pilot Services Denmark ApS
 
Norwegian Cabin Services Denmark ApS
 
Norwegian Air Resources Denmark LH ApS
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