Spyker Cars debts greater than assets - Euronext

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Friday August 27, 2010 11:25:19 AM GMT

AMSTERDAM, Aug 25 (Reuters) - Niche Dutch luxury cars maker Spyker Cars, which bought Sweden's Saab from General Motors Co earlier this year, has informed stock exchange NYSE Euronext that it has more liabilities than assets.

"NYSE Euronext has been informed today by Spyker Cars NV about a negative shareholders' equity position," the stock exchange said in a statement on Wednesday.

It added that Spyker Cars management has been in contact with NYSE Euronext and is committed to complying with Euronext Amsterdam regulations relating to negative shareholders' equity.

The stock exchange said it would not impose any listing measures on Spyker Cars while it was compliant with the exchange's regulations.

These regulations stipulate that Spyker Cars must issue a statement within five days detailing its financial situation and why it has negative shareholders' equity.

The statement should also detail the company's solvency and liquidity position, short- and long-term prospects regarding its continued existence, measures taken and planned to improve its solvency and details of any credit facilities.

Spyker Cars, which has never made a profit, bought the larger Saab from GM earlier this year and is now working to revive the flagging brand.

The company's ability to finance the deal and the Saab turnaround have been an ongoing worry for investors.

Spyker will report half-year results on Aug. 27. (Reporting by Harro ten Wolde and Aaron Gray-Block, editing by Gerald E. McCormick)

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