Saab could have one foot in the grave as the Swedish debt agency is now seizing the automaker's assets.
Saab has managed to sidestep bankruptcy several times over the last two years, but the Swedish automaker may have just been given its final blow as the Swedish Debt Enforcement Authority is preparing to seize the automaker's assets.
Saab owes a total of $620,000 to two suppliers, Kongsberg Automotive AB and Infotiv AB, with Sweden's debt agency now moving to forcefully collect that money from the ailing automaker. Saab was warned earlier this week that it must pay its debts or face possible bankruptcy.
"We have contacted Saab's banks," Hans Ryberg, an official at the Swedish Enforcement Authority told Reuters. The agency can now seize any of Saab's assets, including its bank accounts.
Saab has essentially been out of cash since March of this year, and has even failed to pay employees on two separate occasions. That could be the case again at the end of this month as Saab has a reported monthly payroll of about $24 million.
Unless Saab finds a way to raise money quickly, it could be on the path to bankruptcy.
1.'Swedish debt agency...' view