Saab staff to be paid after new share issue

Saab staff to be paid after new share issue
Employees at troubled Swedish automaker Saab are finally set to get paid salaries for July after Swedish Automobile, the troubled carmaker's Dutch owner, announed Wednesday it was issuing new shares.

“Swedish Automobile announces today that it issued a subscription notice for five million shares under the current 150-million-euro equity facility between Swan and GEM Global Yield Fund Limited” an investment fund which already has a stake in the company, it said in a statement.

According to company’s share price in early trading on the Amsterdam stock exchange, the sale would generate about 6.4 million euros ($9.2 million).

Saab, which is facing a mounting liquidity crisis and bankruptcy threats, added it the statement it expected to be able to pay the salaries of some 1,600 staff for July.

Company spokesman Eric Geers told the TT news agency the cash from the share issue would come in “early enough so we can pay … workers this week.”

Swedish Automobile said it was working on a solution to find more short-term funding that could allow it to “restart and sustain production,” which has been halted on and off since April.

Iconic Swedish brand Saab was saved at the last minute at the beginning of 2010 when it was bought by small Dutch firm Spyker — now known as Swedish Automobile — 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.

At the end of July, Saab had 3,700 employees.

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