Spyker seeks funding, Saab production on hold

Spyker seeks funding, Saab production on hold

Amsterdam: Dutch car maker Spyker cars said production at its Swedish Saab unit will remain on hold as it seeks additional funding to pay suppliers.

Spyker, which bought loss-making Saab from General Motors last year, has been forced to halt production as it is unable to pay its suppliers, but has said it is facing a short-term liquidity crunch rather than collapse.

“Spyker and Saab Automobile are currently in discussion with several parties to secure additional short and medium-term funding for Saab Automobile," the company said in a statement.

It added the Swedish National Debt Office (NDO) has been requested to release its pledge in the shares of Saab property in order to use this property to secure further funding, such as a sale and leaseback.

It said this is one of the funding scenario’s Saab is currently working on, but the outcome of the discussions is still not certain and subject to the release of the NDO.

Spyker expects to be able to come with more details before Thursday.

The company said once additional funding is in place to pay outstanding debts with its suppliers, Saab Automobile expects it will be able to resume normal production within a week from the receipt of funds.