Mixed news for Saab
Parent company Swedish Automobile (Swan) has received a commitment from US private equity firm North Street Capital, LP – which last month agreed to buy Spyker cars – to fund Swan and Saab Automobile AB. The offer consists of subscription to 2,386,635 ordinary shares in the capital of Swan at a price of $4.19 (€3.04) per share for the purpose of funding the working capital of Swan, Saab Automobile and Saab GB, and a loan to Saab Automobile for $60m (€43.6m)to be collateralized by a first lien on certain assets of Saab Automobile as well as a second lien on the collateral as pledged to NDO.
Swan said that it intends to accept this offer because it has doubts that the bridge funding of Chinese firms Youngman and Pang Da, of which a partial payment has been received, will be paid in full. It added that immediate availability of funding is necessary to continue the reorganization process of Saab Automobile.
However, in a separate announcement, Swan has said that Guy Lofalk, the administrator of the reorganisation currently taking place, is to file an application at the Swedish court to terminate of the process.
Saab Automobile said that it will contest this application and request for continuation of the voluntary reorganization process, adding that it will also apply at the court for a replacement administrator.