IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Saturday, April 23, 2011

EIB has approved the sale, but with unreasonable conditions?

In an interview with Dagens Industri web edition the vice president of the European Investment Bank (EIB), Eva Srejber, says that the EIB has made its decision about Saab's proposed sale of its properties to Vladimir Antonov's Convers Group, and this decision was communicated to Saab on Thursday. She also says that it's only the approval of General Motors that remains. And in doing so she also implies that the EIB has approved of the sale.

But Dagens Industri has also been in contact with their sources within Saab, which tells the newspaper that the EIB set some conditions to approve the deal and these conditions are highly unreasonable. One condition is that the whole loan of SEK 3.6 billion must be terminated within 90 days when the collateral in Saab's properties is handed back to Saab. Here's what the source says to the
 - An unreasonable demand for a company that must give the subcontractors predictable working conditions and confidence in Saab's ability to pay, says a source with connection to Saab and the Antonov group, who are upset about the fact that the EIB then gives Saab such a short time for such a large refinancing. 
The EIB also claims that General Motors must approve of the deal and that GM so far has not. But Dagens Industri's sources says that GM has approved and GM's management in Detroit has even sent a letter to the EIB about the issue. In the letter the following is said:
 "GM will, if necessary, remove all restrictions about ownership in the agreement if it is necessary to complete the property sale"
"If necessary, we will be available to clarify any uncertainties in the sales transaction and participate in a teleconference with the EIB, the National Debt Office and Saab Automobile on Monday, April 25"  

I will repeat what I wrote a few days ago: What's up with the EIB?
Is this an example how bureaucracy can virtually kill a company?

The EIB faces no risk with the loan to Saab. It is the Kingdom of Sweden through the National Debt Office and the Government that takes all the risk by guaranteeing the loan. So why set all these new and unreasonable conditions?

Saab really needs to get out of this mess of bureaucracy and politics!