Saab owes $2 billion, which is substantially more than its assets are worth.
Saab's trustees announced late yesterday that the automaker's remaining assets, including its assembly plant, are worth only about a third of what it owes to creditors.
Only some preferential creditors will receive what they are owed when Saab begins to sell off its roughly $532 million in assets. Saab owes about $1.9 billion, according to the automaker's balance sheet.
The biggest debt - around $388 million - is owed to Sweden, which pumped some money into Saab before the automaker closed its doors late last year. Another $107 million is owed to former Saab owner General Motors (not including an additional $388 million in preferential shares, which would only have been paid back if Saab's assets exceeded its debt), while around $89 million is owed to employees, reports the Associated Press.
For its part, GM says that it won't have to write off Saab's debt because it set aside $100 million last year.
Saab's trustees said that employees won't receive any payments unless they worked for Saab Automobile Powertrains, while the country of Sweden will receive some payments for securities in shares.
Parties interested in acquiring Saab's assets as a whole - presumably also including the brand's intellectual property rights - were allowed to submit bids until 5 pm last night in Sweden.
According to TTELA.se, activity among potential bidders was "high," although the only known bidders include India's Mahindra, a Japanese-Chinese consortium and Youngman, the Chinese Lotus importer that GM blocked from taking a stake in Saab late last year.
Additional bids were said to have been received yesterday.