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Saab creditors seek over $3.6 million with collection agency

A group of 48 creditors who are owned money by Saab have turned to the Swedish collection agency Kronofogden to gather monies amounting to a sum of over $3.6 million US dollars and if this group is successful, it could force Saab to declare bankruptcy.

The Swedish online newspaper GT published the full list of the 48 companies who are looking to have Kronofogden collect 23,743,014 Swedish Krona – which amounts to $3,672,944 US dollars with the current conversion rate. The claims against Saab on the 48 company list range greatly in size, with Kontentan Förlags (Bottom Line Publishing) seeking just $198 while a company called Fasitet PDE is seeking $744,083. There are some familiar names on the list as the world’s largest CPA firm Pricewaterhouse-Coopers is involved – hoping that the Kronofogden can retrieve $104,964 from the troubled Swedish automaker. Click here to have a complete look at the list of 48 creditors seeking bankruptcy from The Truth About Cars.

Just how serious is this collection request for Saab? Well, in having a look around the Kronofogden website (by the way, Kronofogden translates to Enforcement Authority in English), we found this explanation of their collection proceedings:
A debt that is not paid ends up in Kronofogden´s register. This register is open for all to consult. As a result, anyone wishing to find out how someone else manages their finances can check the register. If a person´s name appears in the register, he/she can find it difficult to buy on hire purchase, borrow money or rent an apartment.

If you need help in collecting a claim, you can contact Kronofogden. Start by applying to Kronofogden for an order to pay. You can also get help in evicting someone who is renting an apartment/house from you if the person is disturbing the neighbors or is not paying the rent. Start by applying to Kronofogden for an eviction. Once you have been granted an order to pay or an eviction, your claim is formally established. The procedure in which a claim is formally established is called summary process.

Not only does the Kronofogden work with creditors to collect past-due debts, but they also supervise bankruptcy. Many analysts believe that these 48 creditors and the Kronofogden could request that Saab be forced to file bankruptcy to force the company to pay the $3,672,944 US dollars – money that Saab doesn’t seem to have. In addition to the attempts to collect monies owned by Saab to all of these companies, Saab may also have a more difficult time borrowing to both pay these debts as well as acquiring future credit…just in case there was anyone left who would extend credit to the company.

What will happen to Saab if they are indeed forced to file for bankruptcy? Well, this is Kronofogden’s explanation of what happens when they supervise a company’s proceedings:
A company whose debts are excessive may be declared bankrupt by those to whom it owes money. The company is then taken over temporarily by a bankruptcy administrator, often a lawyer, whose task it is to share the remaining money among those with claims on the company. Kronofogden supervises the bankruptcy administrators and ensures that they perform their task correctly.

Saab and parent company Spyker have paired with two different Chinese firms on the sales and manufacturing front in China but those deals are both currently sitting as “memorandums of understanding” while pending final approval from the Chinese government. Many believe that this approval may not come as the Chinese government has shot down similar attempts by Chinese investors to bring more auto brands into the US (Hummer, Saab with Hawtai). Saab claims that Pang Da and Zhejiang Youngman are as good as done deals and that money has already exchanged hands but should the company be forced into bankruptcy, it could both hurt the company’s chances of being approved by the Chinese government as well as any chance of gathering financing elsewhere to keep the company afloat.

We have said it before and, unfortunately, we will say once again that if you are looking at a new Saab car or SUV, it might be a good idea to wait to see what the future holds for the company. Unless you want to buy a new Saab and put it away so that in 30 years you can take it to car shows and hear people say “Hey…I remember the Saab brand”. will continue following Saab’s problems, bringing up updates as they become available.

Source: The Truth About Cars

Other Saab News:
Saab joins forces with a second Chinese group
Saab production stops again
Spyker to become Swedish Automobile N.V.
Saab finds a new Chinese investor in Pang Da
Saab/Spyker partnership with Hawtai Motors terminated
Saab names new Chief Operating Officer for North America