Saab Auto seeks more cash while not ruling out reorganization

Saab Automobile is working primarily on raising more funds to survive over the next several days, while not ruling out filing for reorganization to protect itself from creditors, a spokesman said.

"We're still focusing on securing financing," Eric Geers said in a phone interview today. "But in order to ensure the continued security of Saab, we remain open to all available options."

Swedish Automobile NV, Saab's Dutch owner, said in a statement that it's "aware" of media reports that Saab may be planning a voluntary reorganization. Swedish public radio reported today that Saab is preparing such a court filing, citing unidentified people familiar with the matter.

The automaker, which General Motors Co. sold last year, suspended production in late March amid a cash crunch, and the factory at Saab's Trollhaettan, Sweden, headquarters has been quiet since early June.

Saab delayed paying wages yesterday, the third consecutive postponement in as many months, prompting labor leaders to start a process that may lead them to seek a bankruptcy declaration against the carmaker in two weeks.

The Swedish government's Debt Enforcement Agency started collection proceedings this month at the request of component suppliers with unpaid bills.

GM put Saab into reorganization proceedings for about six months in 2009, allowing the division to cut most of its debts to suppliers.