August 5, 2011 / 8:32 AM / 6 years ago

Swedish union stops bankruptcy process against Saab

STOCKHOLM, Aug 5 (Reuters) - A whitecollar Swedish union has stopped its bankruptcy process against car maker 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 SWAN.AS said on 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. [ID:LnLDE76P1DN] (Reporting by Johan Ahlander)

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