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Saab's debts deepen

Saab says its losses have widened further in the second quarter of the year, while it still hasn't secured funding needed to keep the company alive.

Swedish Automobile - previously known as Spyker - reported a second-quarter loss of €152 million compared with a loss of €60 million in the same period last year.

Revenues fell to €102 million from €198 million in the second quarter last year.

Saab has run out of cash to pay both suppliers and staff's wages and its Trollhattan-based plant has been idle for months.

Swedish Automobile CEO Victor Muller said Saab's management is "working as hard as possible" to strengthen the company's financial position.

Swedish Automobile is also still waiting for the sale of its Spyker super car brand to go through after negotiations to sell to Coventry based CPP Global Holdings stalled on June 24 until Swedish Automobile’s refinancing plans have been implemented.

Brendan O’Toole, founder and co-owner of CPP, said: “It is unfortunate that the negotiations have been delayed, but we understand the challenges facing Swedish Automobile and are prepared to be patient.

"We were advised to suspend the purchase process on June 24 after discussions with Swedish Automobile’s legal team, but we recognise that Spyker is still an ideal fit for CPP’s growing portfolio of low volume premium brands, and we remain fully committed to bringing Spyker to Coventry.

"Our commitment is based on a deal that represents fair value to both parties and that allows Spyker to flourish under CPP’s ownership."

If the deal is completed CPP will build the Spyker C8 Aileron supercar in Coventry with production starting "within days" of an agreement being reached.

CPP has had a contract since November 2010 to manufacture the aluminium chassis and body assemblies for all Spyker road and race cars. CPP revealed its desire to acquire Spyker in February this year.

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