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Saab faces Sept. 20 debt payment deadline


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Saab faces Sept. 20 debt payment deadline

September 7, 2010 - 12:01 am ET

STOCKHOLM (Reuters) -- Sweden's Vastra Gotaland region said Saab, owned by Dutch group Spyker Cars NV, must pay its $15 million bill from the government by Sept. 20 or it will ask the public debt collector to enforce payment.

The bill is from a period when Saab Automobile was under administration and the government of Vastra Gotaland in western Sweden, home to Saab's main production plant, stepped in to cover wages.

Vastra Gotaland Governor Lars Backstrom said on Monday that Saab owed it 110.7 million crowns ($15.3 million).

"If the payment if not made, the case will be handed in to the Swedish Enforcement Authority for debt collection," Backstrom said.

Saab and parent Spyker, which bought Saab from General Motors Co. in February, have said the company should only be required to pay part of the amount demanded, claiming the debt to the government should be treated the same as all of its other debts, which were written down as part of the administration process.

Saab was not immediately available for comment.

Spyker CEO Victor Muller told Dutch news agency ANP the case was "much ado about nothing" and Spyker would fight the claim. However, he said in the worst-case scenario, the company would make a provision for the full amount of the claim.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100907/COPY01/309079970/1193#ixzz0ytAJ3trv

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