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.

Monday, September 12, 2011

Saab's appeal now available online

Saab's appeal to the Court of Appeal for Western Sweden on the rejection of Saab's application for voluntary reconstruction is now available online.

This post will be updated with interesting information from this new application.

  • The application has grown from 14 pages handed in to the District Court to 26 pages handed in to the Court of Appeal. 
  • In addition to the EUR 245 million initial investment by Pang Da and Youngman in Saab, the two Chinese companies have in the shareholders agreement agreed to contribute additional capital when needed.
  • The signals from the Chinese authorities on the deal between Saab and Pang Da / Youngman has been consistently positive. 
  • EUR 70 million in bridge funding from Youngman is expeced to be received within two weeks.
  • International banks are interested in taking over Saab's existing loans (I assume this means the European Investment Bank loan) which makes it possible to secure more funding since the current loans tie up more collateral than needed.
  • Saab does not agree that it is the court's task to assess if a reconstruction will be successful. That is the task of the administration and the creditors.
  • Saab questions how the District Court can be qualified to assess the damage to the Saab brand and goodwill.
  • The application includes letters of support from Pang Da and Youngman where the Chinese confirm their intentions to invest in Saab and that they expect the plans to be approved by Chinese authorities and that they expect no delays in the approval process.
  • Youngman confirms that they will provide EUR 70 million bridge funding together with a German bank (Deutsche Bank has been rumored earlier)
  • The letter from Youngman includes an overview over the approval process in China. The final approval is expected 8 November.
  • Saab has developed a new extended range electric vehicle technology. Read more in next blog post.
  • The new modular architecture (the Phoenix technology) to be used on all future vehicles will reduced future development cost by 30 - 50 percent and may lead to development time for new vehicles to be reduced to only one year.
  • The yearly cost in the development department has been reduced by SEK 400 million the last two years.
  • Quality improvements have lead to 20 percent less in warranty costs.