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Saab limps along after new Chinese payout

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Saab limps along after new Chinese payout
12:40 CET+01:00
The first share of the money promised to Saab by Chinese Youngman has arrived into the cash-strapped carmaker's accounts, according to Saab's head of information, Eric Geers, who was unwilling to disclose how much money was involved.

”But taxes and fees have been paid for Saab now,” Geers told news agency TT.

According to CEO Victor Muller, the sum that Youngman transferred to Saab is significantly higher than the 3.4 million kronor ($496,000) Saab needed for immediate payment of taxes and fees.

”Youngman transferred more than € 3.4 million to us,” Muller told local paper TTELA, adding that the payment is a ”good sign”.

Geers couldn't tell TT what bank was involved in the transaction but said that Saab is now working hard to secure the rest of the financing to continue the restructuring of the company.

According to TT, Saab had managed to clear their taxes regardless of the Chinese money.

”They have accounted for their VAT (moms) now,” confirmed Margareta Åhrberg, tax administrator at the Swedish Tax Agency.

This means that the company should get 21.3 million kronor in tax refunds, clearing their debt of 3.4 million by a large margin.

Youngman had said on Monday that money was on its way, one of many reassurances that funds would be injected into the cash-strapped auto company amid reports that a bankruptcy filing was imminent.

The ambition for Youngman now is to be a part owner of Saab, which would require a significantly larger cash injection.

Muller is also the only remaining member of the Saab board after alternate board member Martin Larsson gave up his position on Monday.

The move not only leaves Muller personally liable to pay the money Saab owed to Swedish authorities, but also violates Swedish corporate law.

However, the company has six months to correct the situation.

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