The agreement was first announced in June and would have given Saab a €245m investment in return for a majority stake.

However in a statement, Swan said that it had decided to terminate the deal ‘in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated’.

It added that the firms had failed to meet explicit and binding agreements related to providing bridge funding to Saab while in reorganisation under Swedish law.

The carmaker also said that it has turned down offers from Pang Da and Youngman to purchase the company outright, which it said ‘are unacceptable’. However the firm commented that ‘discussions between the parties are ongoing’.

Last week, the firm’s court-appointed administrator, Guy Lofalk, said that the he didn’t think Saab would receive the funds from the firms and recommended that the reorganisation process be halted.

However, Saab has received a monetary lifeline from US private equity firm North Street Capital, LP, which has committed to buy $10m (€7.26m) of shares and provide a loan for $60m (€43.6m).