STOCKHOLM -- A white collar Swedish union has stopped its bankruptcy process against cash-strapped carmaker Saab after its workers received their delayed salary on Friday, a union representative told Reuters.
In a move to raise cash, Saab owner Swedish Automobile said Wednesday that GEM Global Yield Fund Ltd. would acquire about 5 million new shares in the Amsterdam-listed company, giving it a 17 percent stake.
"Yes, the wages have been paid and we have stopped the process," Anette Hallengren of the Unionen union told Reuters. The union had begun the bankruptcy steps as part of the process to make sure staff are paid even if a company goes under.
Just last month, Saab managed to fend off its first bankruptcy claim by settling with a supplier. Within days it announced it was unable to pay almost half its workforce because some of the funds committed by investors had not been paid in time.
The Swedish carmaker was forced to halt production at its factory in April because its suppliers refused to deliver parts until their bills were settled.
Shares in Swedish Automobile rose 28 percent on Thursday on a Swedish newspaper report that a new U.S. investor may come on board to help the carmaker.
Swedish business daily Dagens Industri reported that a "big American investor is planning to go in as a part owner in Saab Automobile, which should give opportunities to restart the factory," citing anonymous sources.
The paper reported the source as saying that Saab hoped the deal would be ready by Friday or over the weekend.
In recent months, it has announced new funding plans with Chinese partners and existing shareholders in a bid to stave off bankruptcy.