TTELA reports that Sweden's National Debt Office (NDO) has now paid back Saab's EUR 217 million loan in the European Investment Bank (EIB). For Saab to be approved this loan back in 2010, Sweden had to guarantee the loan. The Swedish government gave the NDO the task of guaranteeing the loan. When Saab went bankrupt the EIB called in the loan and thus made the NDO pay.
This means that Sweden through the NDO is now the biggest creditor in the bankruptcy estate. From earlier we also know that the NDO has made sure that they have security for the guarantee they gave. This security was amongst other thing pledged shares in Saab Automobile Parts AB, which is the very profitable Saab genuine spare parts company.
Now the NDO can if it wants, take over the ownership of Saab Automobile Parts AB. But so far it has not. The hope is still that a buyer will emerge and buy the complete Saab Automobile business. But it would probably require that the buyer pays much or maybe even all of the EUR 217 million (approx. SEK 2.2 billion) which the NDO now has paid to the EIB. Or else the NDO and Sweden may be better off taking control over Saab Automobile Parts.
The good thing about all this is that all ties to the bureaucratic EIB is now cut. Any buyer of Saab does not need to worry about the EIB anymore.
A blog fueled by enthusiasm about Saab, the greatest car company between the North and the South Pole. And their cars, which probably is the only cars that would start on a cold and crispy South Pole morning.
Showing posts with label financial. Show all posts
Showing posts with label financial. Show all posts
Friday, January 27, 2012
Tuesday, December 20, 2011
Chinese, Turks and undisclosed parties interested in the Saab bankruptcy estate
Updated with info from bankruptcy administrator on the number of interested parties
According to Dagens Industri, Chinese Youngman is ready to buy the Saab bankruptcy estate. The bid will be for the whole or parts of the business that does not rely on the General Motors (GM) technology.
"We want to secure workplaces and see to it that the business can stay in Trollhättan. But the production will not remain at the same level as it has been," said lawyer and spokesman for Youngman Johan Nylén to DI.
The bid will more or less be for the Phoenix technology, which is not fully developed. But Nylén will not rule out other parts not dependent on GM technology.
"We will immediately start a dialogue with GM, but also with the bankruptcy administrators. We are very keen to have a good relationship with General Motors," Johan Nylén told DI.
To TTELA Johan Nylén said that Youngman will arrive to Sweden tomorrow to meet the bankruptcy administrators.
"The management of the company [Youngman] was very disappointed by GM's response this weekend, but they are still interested in finding a solution. They will act fast. They are interested in Saab's technology development, Saab Powertrain and the Phoenix technology. Or rather they are really interested in saving as much as possible of the existing operations in Trollhättan," Nylén said to TTELA.
According to Nylén, Youngman is interested in producing the current Saab 9-3 which is not based on unqiue GM technology and then start producing cars based on the new Phoenix technology.
"But the new models can not be introduced on the market for another one or two years, and until then it's all about surviving in some form."
But Youngman is not the only interested party. According to Norwegian business newspaper Dagens Næringsliv, at least ten different parties have been in discussions with Victor Muller lately with the aim to invest in Saab.
Swedish TTELA now writes that several Chinese parties have shown interest for the Saab bankruptcy estate. Probably including vehicle manufacturers other than Youngman. Maybe the former suitor BIAC?
According to TT, the number of parties interested in taking over the whole or parts of the bankruptcy estate is five. This according to the bankruptcy administrator. One is Youngman and if DI and TTELA is correct, we can assume that one is Turkish and one other is Chinese.
One of the other non-Chinese parties might be Turkish. Dagens Industri reports that the Turkish embassy has been in contact with both Sweden's Ministry of Enterprise and Saab's owner Swedish Automobile expressing interest in Saab. Turkey has many car factories but no car brands. CEO of the European Association of Automotive Suppliers (CLEPA), Lars Holmqvist, does however think that the Turks are only interested in the technology and not the Trollhättan factory.
"Regardless of who buys all or parts of Saab's facilities, there is little chance of it staying in Trollhättan," Lars Holmqvist told Sedish TV SVT.
So now it looks like Saab must rely on the good will from the interested parties rather than GM after the American company decided to show Saab no mercy. But at the same time it must rely on the two other companies which holds the rights to the Saab name and Gripen logo. These are the aerospace and defence company Saab AB and the commercial vehicle developer and producer Scania AB. These two companies can turn out to be crucial in deciding the destany of the Saab brand and the future of Trollhättan. And one can hope that they will set conditions, e.g. that Saab must stay in Trollhättan with both development and manufacturing, for anyone to buy and use the brand, including the Chinese.
You can read more about the agreement that protects of the use of the Saab name and the Gripen logo here.
And to GM I have this message: Hands off! If GM as much as considers biding on the Phoenix technology to keep it away from other manufacturers, then GM is in for trouble!
According to Dagens Industri, Chinese Youngman is ready to buy the Saab bankruptcy estate. The bid will be for the whole or parts of the business that does not rely on the General Motors (GM) technology.
"We want to secure workplaces and see to it that the business can stay in Trollhättan. But the production will not remain at the same level as it has been," said lawyer and spokesman for Youngman Johan Nylén to DI.
The bid will more or less be for the Phoenix technology, which is not fully developed. But Nylén will not rule out other parts not dependent on GM technology.
"We will immediately start a dialogue with GM, but also with the bankruptcy administrators. We are very keen to have a good relationship with General Motors," Johan Nylén told DI.
To TTELA Johan Nylén said that Youngman will arrive to Sweden tomorrow to meet the bankruptcy administrators.
"The management of the company [Youngman] was very disappointed by GM's response this weekend, but they are still interested in finding a solution. They will act fast. They are interested in Saab's technology development, Saab Powertrain and the Phoenix technology. Or rather they are really interested in saving as much as possible of the existing operations in Trollhättan," Nylén said to TTELA.
According to Nylén, Youngman is interested in producing the current Saab 9-3 which is not based on unqiue GM technology and then start producing cars based on the new Phoenix technology.
"But the new models can not be introduced on the market for another one or two years, and until then it's all about surviving in some form."
But Youngman is not the only interested party. According to Norwegian business newspaper Dagens Næringsliv, at least ten different parties have been in discussions with Victor Muller lately with the aim to invest in Saab.
Swedish TTELA now writes that several Chinese parties have shown interest for the Saab bankruptcy estate. Probably including vehicle manufacturers other than Youngman. Maybe the former suitor BIAC?
According to TT, the number of parties interested in taking over the whole or parts of the bankruptcy estate is five. This according to the bankruptcy administrator. One is Youngman and if DI and TTELA is correct, we can assume that one is Turkish and one other is Chinese.
One of the other non-Chinese parties might be Turkish. Dagens Industri reports that the Turkish embassy has been in contact with both Sweden's Ministry of Enterprise and Saab's owner Swedish Automobile expressing interest in Saab. Turkey has many car factories but no car brands. CEO of the European Association of Automotive Suppliers (CLEPA), Lars Holmqvist, does however think that the Turks are only interested in the technology and not the Trollhättan factory.
"Regardless of who buys all or parts of Saab's facilities, there is little chance of it staying in Trollhättan," Lars Holmqvist told Sedish TV SVT.
So now it looks like Saab must rely on the good will from the interested parties rather than GM after the American company decided to show Saab no mercy. But at the same time it must rely on the two other companies which holds the rights to the Saab name and Gripen logo. These are the aerospace and defence company Saab AB and the commercial vehicle developer and producer Scania AB. These two companies can turn out to be crucial in deciding the destany of the Saab brand and the future of Trollhättan. And one can hope that they will set conditions, e.g. that Saab must stay in Trollhättan with both development and manufacturing, for anyone to buy and use the brand, including the Chinese.
You can read more about the agreement that protects of the use of the Saab name and the Gripen logo here.
And to GM I have this message: Hands off! If GM as much as considers biding on the Phoenix technology to keep it away from other manufacturers, then GM is in for trouble!
Monday, December 19, 2011
A glimmer of hope
First let me remind you that Saab today filed for bankruptcy. Later today TTELA reported that Vänersborg District Court approved the filing and Saab is now declared bankrupt. It is 99.9 percent certain that no more Saab cars will ever be produced.
That said, after the dust settled this morning, reports came through that the Swedish law opens up for someone to come and buy the bankruptcy estate of Saab. And this buyer can restart the company. Even Victor Muller said this to the news media, and he even claimed that interested parties had been in contact. Also the industry analyst Matts Carlsson said that he believes that Saab can come back. Carlsson even went as far as saying that this could be a strategic move from Victor Muller to eliminate GM's possibility to block a deal with the Chinese.
So there is a glimmer of hope. But I can't stress this enough: this is highly unlikely!
That said, after the dust settled this morning, reports came through that the Swedish law opens up for someone to come and buy the bankruptcy estate of Saab. And this buyer can restart the company. Even Victor Muller said this to the news media, and he even claimed that interested parties had been in contact. Also the industry analyst Matts Carlsson said that he believes that Saab can come back. Carlsson even went as far as saying that this could be a strategic move from Victor Muller to eliminate GM's possibility to block a deal with the Chinese.
So there is a glimmer of hope. But I can't stress this enough: this is highly unlikely!
Saab files for bankruptcy
Swedish Automobile has just announced that its subsidiaries Saab Automobile AB, Saab Automobile Tools AB and Saab Automobile Powertrain AB files for bankruptcy.
"I'm in despair and furious at once," Victor Muller told TTELA today after Saab filed for bankruptcy.
Muller told TTELA that the decision to file for bankruptcy was taken this morning after he received the reply on an email he sent to GM concerning the latest proposal to save Saab.
When asked how he feels about GM right now, Muller responded "how would you feel?".
"GM said that they would not support any investment from Youngman, it be loan or capital investment. Youngman could not disregard that threat," said Muller.
Zeewolde, The Netherlands, 19 December 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden this morning.
After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.
Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.
Saab's CEO and Chairman Victor Muller on his way into Vänersborg District Court with the bankruptcy applications
"I'm in despair and furious at once," Victor Muller told TTELA today after Saab filed for bankruptcy.
Muller told TTELA that the decision to file for bankruptcy was taken this morning after he received the reply on an email he sent to GM concerning the latest proposal to save Saab.
When asked how he feels about GM right now, Muller responded "how would you feel?".
"GM said that they would not support any investment from Youngman, it be loan or capital investment. Youngman could not disregard that threat," said Muller.
What will happen today?
Yesterday, December 18th, it was exactly two years since GM announced that it would liquidate Saab Automobile. Today GM might finally get its wish.
Today at 13:00 CET, a hearing concerning the Saab reconstruction is to be held at the Vänersborg District Court. At this hearing Saab, its creditors and its court appointed administrator of the reconstruction will get the chance to express their opinion about whether Saab should stay in reconstruction or not. Thereafter the court will make a decision.
But it could end even earlier. If Saab has not gotten the funds needed to pay employee salaries for November and the coming salaries for December and other running costs during the reconstruction, Saab might file for bankruptcy even before the court hearing starts this afternoon.
GM did its best to stop that funding when it this weekend made it clear that it will not approve any deal where Saab gets funds from China. Even if the technology deals between GM and Saab only require an approval from GM when the ownership of Saab change, GM can more or less kill Saab by breaking the technology deals and refusing to supply Saab and instead fight it out in numerous court battles. The question is if Youngman is willing to risk that scenario and thus still willing to fund Saab.
Many days have earlier been proclaimed the most important day in the history of Saab, and today might just be the day on top of that list.
Today at 13:00 CET, a hearing concerning the Saab reconstruction is to be held at the Vänersborg District Court. At this hearing Saab, its creditors and its court appointed administrator of the reconstruction will get the chance to express their opinion about whether Saab should stay in reconstruction or not. Thereafter the court will make a decision.
But it could end even earlier. If Saab has not gotten the funds needed to pay employee salaries for November and the coming salaries for December and other running costs during the reconstruction, Saab might file for bankruptcy even before the court hearing starts this afternoon.
GM did its best to stop that funding when it this weekend made it clear that it will not approve any deal where Saab gets funds from China. Even if the technology deals between GM and Saab only require an approval from GM when the ownership of Saab change, GM can more or less kill Saab by breaking the technology deals and refusing to supply Saab and instead fight it out in numerous court battles. The question is if Youngman is willing to risk that scenario and thus still willing to fund Saab.
Many days have earlier been proclaimed the most important day in the history of Saab, and today might just be the day on top of that list.
Sunday, December 18, 2011
GM just trying to scare away Youngman?
This weekend we got the news that Gangster Motors (GM) claims that it must not only approve any changes in the ownership of Saab Automobile but also in who is providing the funds to operate Saab. A claim which of course is totally ludicrous. But the question is if the statement is enough to scare Youngman and the Chinese bank off, and if not, will the next months and years see numerous legal battles between Swedish Automobile and GM?
Lars Holmqvist, CEO of the European Association of Automotive Suppliers (CLEPA), does not think that GM legally can stop the deal.
"I think this is a statement to keep the Chinese partner SAIC in a good mood, because it shows that GM is trying to stop the transfer of technology to China," Lars Holmqvist said to Swedish Radio.
"I believe that it probably is not possible to stop it legally. The way the deal is arranged, as I have been informed by Victor Muller, should be in such a way that it can be done despite the deals signed between GM and Swedish Automobile when Saab was bought two years ago," said Holmqvist.
When Saab in February 2010 was sold from GM to Spyker Cars (now named Swedish Automobile), the sale also consisted of several technology deals so that Saab could continue producing the Saab 9-3 and the Saab 9-5 which are based on GM owned technology, and GM would supply Saab with the Saab 9-4X. Deals that require GM's approval before any changes in the ownership of Saab can be carried out.
"I think it is very strange that GM made this statement yesterday. Nobody has informed GM, at least not the two parties which are negotiating. And I do not understand how GM can make a statement on an issue they have not been asked to respond to," Holmqvist said.
Lars Holmqvist believes that Saab can still complete the loan deal with Youngman, but the question is whether Youngman now dares.
"This does probably just mean that Youngman, the partner, can get doubtful and that can turn into a disaster in this case, because it could mean that the promised money is not paid," Lars Holmqvist said.
"But otherwise I do not think it has any affect. Victor Muller has been aware of this all long, Youngman too, and they have reach an arrangement which a lot of lawyers have looked at. I believe that it holds up from a purely legal point of view, but it is possible that this is psychological warfare by GM to stop Saab."
And according to Saab's CEO Victor Muller, Youngman has so far not seemed to be affected by GM's statement.
"The negotiations are ongoing. So far there has been no reaction from Youngman on GM's statement," Victor Muller wrote to Swedish Radio this morning.
Lars Holmqvist, CEO of the European Association of Automotive Suppliers (CLEPA), does not think that GM legally can stop the deal.
"I think this is a statement to keep the Chinese partner SAIC in a good mood, because it shows that GM is trying to stop the transfer of technology to China," Lars Holmqvist said to Swedish Radio.
"I believe that it probably is not possible to stop it legally. The way the deal is arranged, as I have been informed by Victor Muller, should be in such a way that it can be done despite the deals signed between GM and Swedish Automobile when Saab was bought two years ago," said Holmqvist.
When Saab in February 2010 was sold from GM to Spyker Cars (now named Swedish Automobile), the sale also consisted of several technology deals so that Saab could continue producing the Saab 9-3 and the Saab 9-5 which are based on GM owned technology, and GM would supply Saab with the Saab 9-4X. Deals that require GM's approval before any changes in the ownership of Saab can be carried out.
"I think it is very strange that GM made this statement yesterday. Nobody has informed GM, at least not the two parties which are negotiating. And I do not understand how GM can make a statement on an issue they have not been asked to respond to," Holmqvist said.
Lars Holmqvist believes that Saab can still complete the loan deal with Youngman, but the question is whether Youngman now dares.
"This does probably just mean that Youngman, the partner, can get doubtful and that can turn into a disaster in this case, because it could mean that the promised money is not paid," Lars Holmqvist said.
"But otherwise I do not think it has any affect. Victor Muller has been aware of this all long, Youngman too, and they have reach an arrangement which a lot of lawyers have looked at. I believe that it holds up from a purely legal point of view, but it is possible that this is psychological warfare by GM to stop Saab."
And according to Saab's CEO Victor Muller, Youngman has so far not seemed to be affected by GM's statement.
"The negotiations are ongoing. So far there has been no reaction from Youngman on GM's statement," Victor Muller wrote to Swedish Radio this morning.
GM determined to kill off Saab
Yesterday afternoon General Motors (GM) said in a statement that it will say a definite no to all proposals for a further reconstruction of Saab. Saab's CEO and Chairman, Victor Muller, does however not agree that GM has to approve the latest arrangement.
"Saab's various new alternative proposals are not meaningfully different from what was originally proposed to General Motors and rejected", said GM spokesman James Cain.
"Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders. As such, GM cannot support any of these proposed alternatives”, Cain added.
GM has earlier said no to two different proposals for deals where Chinese companies takes stakes in Saab. This time Saab's owner Swedish Automobile has reached an agreement with Chinese Youngman where the Chinese takes no stake in Saab Automobile, but instead gets part ownership of a new technology company. According to Victor Muller, such an arrangement should not require any approval from GM.
"We do not think that GM has any say in an arrangement where Youngman gets no stake in Saab Automobile. The statement is obviously done from hearsay, and meant to affect Monday's court hearing negatively, " Victor Muller wrote in a text message to Svenska Dagbladet.
GM and spokesman James Cain do however not agree.
"After we rejected Saab's latest proposal, we know that Saab began exploring alternative ways that they (wrongly) believes do not require approval from our side," James Cain writes in an email to Svenska Dagbladet.
The man proposed as new administrator of the reconstruction of Saab, Lars Söderqvist, is bewildered.
"I do not understand at all why GM makes this statement," Lars Söderqvist said.
"The latest proposal is designed in such a way that it does not required the approval of GM," said Söderqvist.
Söderqvist continued saying that he does not know if GM has been presented the latest arrangement in detail.
"But I think it is natural that if you reach an agreement that does not concern GM at all, then it would be very odd if you informed them fully about the new agreement."
What to think of this? Let me be blunt: The past months, not mention the last three years, clearly shows that GM is determined to kill off Saab. I am convinced that this was the plan in 2008 and still is.
"Saab's various new alternative proposals are not meaningfully different from what was originally proposed to General Motors and rejected", said GM spokesman James Cain.
"Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders. As such, GM cannot support any of these proposed alternatives”, Cain added.
GM has earlier said no to two different proposals for deals where Chinese companies takes stakes in Saab. This time Saab's owner Swedish Automobile has reached an agreement with Chinese Youngman where the Chinese takes no stake in Saab Automobile, but instead gets part ownership of a new technology company. According to Victor Muller, such an arrangement should not require any approval from GM.
"We do not think that GM has any say in an arrangement where Youngman gets no stake in Saab Automobile. The statement is obviously done from hearsay, and meant to affect Monday's court hearing negatively, " Victor Muller wrote in a text message to Svenska Dagbladet.
GM and spokesman James Cain do however not agree.
"After we rejected Saab's latest proposal, we know that Saab began exploring alternative ways that they (wrongly) believes do not require approval from our side," James Cain writes in an email to Svenska Dagbladet.
The man proposed as new administrator of the reconstruction of Saab, Lars Söderqvist, is bewildered.
"I do not understand at all why GM makes this statement," Lars Söderqvist said.
"The latest proposal is designed in such a way that it does not required the approval of GM," said Söderqvist.
Söderqvist continued saying that he does not know if GM has been presented the latest arrangement in detail.
"But I think it is natural that if you reach an agreement that does not concern GM at all, then it would be very odd if you informed them fully about the new agreement."
What to think of this? Let me be blunt: The past months, not mention the last three years, clearly shows that GM is determined to kill off Saab. I am convinced that this was the plan in 2008 and still is.
Friday, December 16, 2011
CLEPA to support any attempt to restart Saab
TTELA reports that Vänersborg District Court has decided that Guy Lofalk will stay as administrator of the Saab reconstruction until Monday. Saab's creditors will have the chance to air their opinion about the proposed new administrator Lars Söderqvist, before the court makes its decision after the Monday hearing.
The head of the European Association of Automotive Suppliers (CLEPA), Lars Holmqvist, tells just-auto that they will do everything to support Saab:
"We will support any attempt to try to restart Saab. We are just waiting for the green light," Holmqvist told just-auto.
Which most likely means that CLEPA will have no objections against Lars Söderqvist as new administrator and also will support a continued reconstruction.
According to Holmqvist of CLEPA, the bankruptcy rumors on Monday was due to people around Victor Muller trying to pressure Muller into filing for bankruptcy. But Muller did not let those people impact his firm belief in Saab's future.
"We have been up and down listening to Victor Muller. On Friday I was quite pessimistic and on Friday night he [Muller] sent a copy of the statement slip that the money had been sent by Youngman," Holmqvist said to just-auto and continued:
"Then, on Monday, he was pressed by people around him to file for bankruptcy. They were afraid they would be personally responsible for debts. But he refused and he was right because the money arrived and he got a respite again. Another rabbit hopped up from the hat - I knew what was going on, but I did not think it was going to be in time."
Holmqvist also said that under the current plan the Chinese will supply enough funds to restart Saab.
"That means they [Youngman] will provide EUR 200 million and a financial investor will provide EUR 500 million - that will be enough to restart and give Saab a chance. Youngman has already spent a lot of money, if nothing else to protect the investment they have already made."
But for the court to rule that the reconstruction can continue, money to pay running costs like salaries must be present on Monday, or at least a binding promise of immediate funds must be presented.
Today Victor Muller said to TTELA that the salaries to the Saab employees will be paid as soon as possible. The goal is to have secured funding to pay salaries and other due costs incurred during the reconstruction on Monday. Muller and Rachel Pang from Youngman will continue the discussions about the deal to fund Saab in Stockholm during the weekend.
So I guess there will be one more weekend of hard work in Stockholm while the rest of us enjoy a couple of days off work!
The head of the European Association of Automotive Suppliers (CLEPA), Lars Holmqvist, tells just-auto that they will do everything to support Saab:
"We will support any attempt to try to restart Saab. We are just waiting for the green light," Holmqvist told just-auto.
Which most likely means that CLEPA will have no objections against Lars Söderqvist as new administrator and also will support a continued reconstruction.
"We have been up and down listening to Victor Muller. On Friday I was quite pessimistic and on Friday night he [Muller] sent a copy of the statement slip that the money had been sent by Youngman," Holmqvist said to just-auto and continued:
"Then, on Monday, he was pressed by people around him to file for bankruptcy. They were afraid they would be personally responsible for debts. But he refused and he was right because the money arrived and he got a respite again. Another rabbit hopped up from the hat - I knew what was going on, but I did not think it was going to be in time."
Holmqvist also said that under the current plan the Chinese will supply enough funds to restart Saab.
"That means they [Youngman] will provide EUR 200 million and a financial investor will provide EUR 500 million - that will be enough to restart and give Saab a chance. Youngman has already spent a lot of money, if nothing else to protect the investment they have already made."
But for the court to rule that the reconstruction can continue, money to pay running costs like salaries must be present on Monday, or at least a binding promise of immediate funds must be presented.
Today Victor Muller said to TTELA that the salaries to the Saab employees will be paid as soon as possible. The goal is to have secured funding to pay salaries and other due costs incurred during the reconstruction on Monday. Muller and Rachel Pang from Youngman will continue the discussions about the deal to fund Saab in Stockholm during the weekend.
So I guess there will be one more weekend of hard work in Stockholm while the rest of us enjoy a couple of days off work!
Thursday, December 15, 2011
New reconstruction administrator proposed
The current administrator of the Saab reconstruction, Guy Lofalk, and Saab's management have proposed Lars Söderqvist from Hökerberg & Söderqvist law firm as the next administrator.
"I have been informed and have also been given the opportunity to get confirmation from the parties involved on the conditions for the plan. The confirmations have been of a nature that I have determined that there are conditions for this to be successful," Lars Söderqvist said to Swedish news agency TT.
Yesterday it became known that Lofalk had asked the court to be relieved from his duties as administrator. Saab then proposed that Lars-Henrik Andersson of the Stockholm branch of Lindahl law firm should be appointed, but Andersson earlier today told the court that he was not available.
This evening Victor Muller told GT that Andersson was forced to pass on being administrator when the Gothenburg branch of the law firm decided that the firm would not be part of the reconstruction. Reason being that the firm believes that they will be chosen to handle a potential Saab bankruptcy, and the firm that handles a reconstruction can not also handle a bankruptcy in the same company.
I presume that corporate Sweden makes a note of how Lindahl law firm conducts business.
The court will decide on Monday's hearing who will be appointed.
"I have been informed and have also been given the opportunity to get confirmation from the parties involved on the conditions for the plan. The confirmations have been of a nature that I have determined that there are conditions for this to be successful," Lars Söderqvist said to Swedish news agency TT.
Yesterday it became known that Lofalk had asked the court to be relieved from his duties as administrator. Saab then proposed that Lars-Henrik Andersson of the Stockholm branch of Lindahl law firm should be appointed, but Andersson earlier today told the court that he was not available.
This evening Victor Muller told GT that Andersson was forced to pass on being administrator when the Gothenburg branch of the law firm decided that the firm would not be part of the reconstruction. Reason being that the firm believes that they will be chosen to handle a potential Saab bankruptcy, and the firm that handles a reconstruction can not also handle a bankruptcy in the same company.
I presume that corporate Sweden makes a note of how Lindahl law firm conducts business.
The court will decide on Monday's hearing who will be appointed.
New administrator jumps ship before he starts
Swedish GP reports that the man suggested as new administrator of the Saab reconstruction has jumped ship even before he takes on the task.
Yesterday the current administrator Guy Lofalk in a letter to the Vänersborg District Court applied to be relieved from the task as administrator of the Saab reconstruction. In the same letter Saab suggested that Lars-Henrik Andersson should be appointed new adminsitator and it said that Andersson was willing to take on the task.
But earlier today Lars-Henrik Andersson telephoned the Vänersborg District Court and said that he would not be able to take on the task as administrator after all. The reason for the sudden change of heart is unknown.
Saab will have until 16:00 CET today to suggest another administrator.
"We will find a new person. We are working on it together with Guy Lofalk now," said Eric Geers, Executive Director Communications.
The court will appoint a new administrator on Monday.
This was another piece of uncertainty and unprofessionality that Saab does not need.
Yesterday the current administrator Guy Lofalk in a letter to the Vänersborg District Court applied to be relieved from the task as administrator of the Saab reconstruction. In the same letter Saab suggested that Lars-Henrik Andersson should be appointed new adminsitator and it said that Andersson was willing to take on the task.
But earlier today Lars-Henrik Andersson telephoned the Vänersborg District Court and said that he would not be able to take on the task as administrator after all. The reason for the sudden change of heart is unknown.
Saab will have until 16:00 CET today to suggest another administrator.
"We will find a new person. We are working on it together with Guy Lofalk now," said Eric Geers, Executive Director Communications.
The court will appoint a new administrator on Monday.
This was another piece of uncertainty and unprofessionality that Saab does not need.
Wednesday, December 14, 2011
Exit Lofalk, enter Andersson
The court appointed administrator of the Saab reconstruction, which on Wednesday last week applied to the court to end the reconstruction, has today requested to be relieved from his duties as administrator. That's according to Vänersborg District Court.
According to TTELA, in his request Lofalk writes that the new agreement being discussed between Swedish Automobile and Youngman regarding Saab deserves the attention of a new administrator.
Is this what they call to resign before you get sacked?
In his application to resign, Lofalk writes that he has been informed that Swedish Automobile and Youngman have come to an agreement on a new funding for Saab Automobile and its subsidiaries. He continues saying that the assessment he made prior to applying for a termination of the reconstruciton was based on the previous attempts at funding Saab. He has not had time to assess the new funding plan, but thinks that it deserves the attention of a new administrator.
Lofalk also writes that a new administrator should be appointed ASAP so that the new administrator can decide whether the reconstruction should continue or not.
Lofalk's application can be read here.
The legal counselor that has been suggested by Saab to replace Lofalk is Lars-Henrik Andersson from Lindahl's law firm. Andersson has already agreed to be administrator, but the court will have the final word on the matter on Monday.
TTELA reports that at the court hearing on Monday also Saab's CEO Victor Muller and CEO of Youngman Automotive Rachel Pang will be present, and both will of course argue that the reconstruction must continue.
One good thing one can read out of all this is that Lofalk now seems to believe that the latest deal between Swedish Automobile and Youngman might actually work.
One stakeholder that argues that the reconstruction must end is Platzer Fastigheter, which owns buildings in Gothenburg rented by Saab. Dagens Industri reports that the company requests that the reconstruction is ended since the company does not believe that Saab can raise enough funds to survive.
Guy Lofalk exits...
According to TTELA, in his request Lofalk writes that the new agreement being discussed between Swedish Automobile and Youngman regarding Saab deserves the attention of a new administrator.
Is this what they call to resign before you get sacked?
In his application to resign, Lofalk writes that he has been informed that Swedish Automobile and Youngman have come to an agreement on a new funding for Saab Automobile and its subsidiaries. He continues saying that the assessment he made prior to applying for a termination of the reconstruciton was based on the previous attempts at funding Saab. He has not had time to assess the new funding plan, but thinks that it deserves the attention of a new administrator.
Lofalk also writes that a new administrator should be appointed ASAP so that the new administrator can decide whether the reconstruction should continue or not.
Lofalk's application can be read here.
The legal counselor that has been suggested by Saab to replace Lofalk is Lars-Henrik Andersson from Lindahl's law firm. Andersson has already agreed to be administrator, but the court will have the final word on the matter on Monday.
Lars-Henrik Andersson enters?
TTELA reports that at the court hearing on Monday also Saab's CEO Victor Muller and CEO of Youngman Automotive Rachel Pang will be present, and both will of course argue that the reconstruction must continue.
One good thing one can read out of all this is that Lofalk now seems to believe that the latest deal between Swedish Automobile and Youngman might actually work.
One stakeholder that argues that the reconstruction must end is Platzer Fastigheter, which owns buildings in Gothenburg rented by Saab. Dagens Industri reports that the company requests that the reconstruction is ended since the company does not believe that Saab can raise enough funds to survive.
The latest deal to save Saab
Swedish newspaper Dagens Industri today writes about the latest deal to save Saab. Accoring to DI, the first part of the deal is to secure EUR 30 - 40 million through payments from Youngman. This money is supposed to be used to pay salaries to the Saab employees and ensure a continued reconstruction.
The next step is for an undisclosed Chinese bank to loan SEK 2 - 3 billion (EUR 230 - 340 million) to Saab. Money probably intended to be used to redeem the loan in the European Investment Bank and pay suppliers so that production of Saab cars in Trollhättan can be restarted.
Chinese Youngman will guarantee the loan in the Chinese bank and will in return get convertible preferred shares in Saab. These are shares that do not give the holder any influence on the company, but which after a predetermined time can be turned into ordinary shares in the common stock. One can imagine that the redemption date can be around 5 years from now, when Saab no longer will depend on General Motors (GM) unique technology.
By giving Youngman only preferred shares without any influence over Saab, the hope is that GM will accept the deal and still supply Saab with technology.
Youngman will also agree to invest SEK 10 billions the next five years. This investment will be in a joint-venture company and not directly into Saab.
According to TTELA, the plan is to establish a joint-venture company which holds the rights to Saab developed technology and which is responsible for technology development at Saab. This company will be part owned by Youngman and part owned by Saab's parent company Swedish Automobile. Should Saab go bust, this will secure Youngman some value for money invested and the loan it is to guarantee.
The establishment of a joint-venture company will not require any changes in the ownership structure of Saab Automobile and this part of the deal will therefore not need the blessing of GM or the European Investment Bank. The Swedish National Debt Office (NDO) will however need to approve such a deal since the NDO has plegdes in much of Saab's assets. It has been reported that Victor Muller did meet the NDO on Monday, and it is probable that the meeting was in regard to such a deal. The NDO has said that their collateral in Saab's tools and parts companies should be enough to cover the loan in the EIB which the Swedish Government has guaranteed for Saab. And the NDO should therefore be open to allowing a joint-vernture company that holds Saab's development and technology.
In this deal China's National Development and Reform Commission (NDRC) will have to approve the Chinese investments/loans. From earlier we know that two local branches of the Development and Reform Commission approved the intital plan where Youngman and Pang Da would become part owners of Saab. It is uncertain whether the NDRC will approve the deal outlined here or not. But Youngman transferring EUR 3.4 million yesterday is a good sign. And if the promised EUR 30 - 40 million is also transferred quickly (which is a big sum that probably needs clearance by high level Chinese authorities), then we can consider it a very good sign.
So that is the deal according to Swedish news media. We will have to wait and see if this is the final deal that saves Saab.
The next step is for an undisclosed Chinese bank to loan SEK 2 - 3 billion (EUR 230 - 340 million) to Saab. Money probably intended to be used to redeem the loan in the European Investment Bank and pay suppliers so that production of Saab cars in Trollhättan can be restarted.
Chinese Youngman will guarantee the loan in the Chinese bank and will in return get convertible preferred shares in Saab. These are shares that do not give the holder any influence on the company, but which after a predetermined time can be turned into ordinary shares in the common stock. One can imagine that the redemption date can be around 5 years from now, when Saab no longer will depend on General Motors (GM) unique technology.
By giving Youngman only preferred shares without any influence over Saab, the hope is that GM will accept the deal and still supply Saab with technology.
Rachel Pang, CEO of Youngman Automotive and Saab's biggest fan in China?
Youngman will also agree to invest SEK 10 billions the next five years. This investment will be in a joint-venture company and not directly into Saab.
According to TTELA, the plan is to establish a joint-venture company which holds the rights to Saab developed technology and which is responsible for technology development at Saab. This company will be part owned by Youngman and part owned by Saab's parent company Swedish Automobile. Should Saab go bust, this will secure Youngman some value for money invested and the loan it is to guarantee.
The establishment of a joint-venture company will not require any changes in the ownership structure of Saab Automobile and this part of the deal will therefore not need the blessing of GM or the European Investment Bank. The Swedish National Debt Office (NDO) will however need to approve such a deal since the NDO has plegdes in much of Saab's assets. It has been reported that Victor Muller did meet the NDO on Monday, and it is probable that the meeting was in regard to such a deal. The NDO has said that their collateral in Saab's tools and parts companies should be enough to cover the loan in the EIB which the Swedish Government has guaranteed for Saab. And the NDO should therefore be open to allowing a joint-vernture company that holds Saab's development and technology.
In this deal China's National Development and Reform Commission (NDRC) will have to approve the Chinese investments/loans. From earlier we know that two local branches of the Development and Reform Commission approved the intital plan where Youngman and Pang Da would become part owners of Saab. It is uncertain whether the NDRC will approve the deal outlined here or not. But Youngman transferring EUR 3.4 million yesterday is a good sign. And if the promised EUR 30 - 40 million is also transferred quickly (which is a big sum that probably needs clearance by high level Chinese authorities), then we can consider it a very good sign.
So that is the deal according to Swedish news media. We will have to wait and see if this is the final deal that saves Saab.
Tuesday, December 13, 2011
Saab reconstruction hearing to be held Monday
TTELA reports that Saab has requested a oral hearing with Vänersborg District Court concerning the reconstruction process. The district court has allowed Saab to present its response to the administrators request that the reconstruction should be ended. The proceedings will be held on Monday at 13:00 CET.
This means that Saab has gotten four more days to prepare its presentation to the court. And also four more days to secure funding that will allow the company to continue the reconstruction.
Earlier today we got the news that Saab had gotten EUR 3.4 million from Chinese Youngman. Enough to cover incurred taxes. But still several millions are needed to pay salaries for November and December and to secure a continued reconstruction. The coming days will see if Saab and its parent company Swedish Automobile will be able to secure the needed funding.
This means that Saab has gotten four more days to prepare its presentation to the court. And also four more days to secure funding that will allow the company to continue the reconstruction.
Earlier today we got the news that Saab had gotten EUR 3.4 million from Chinese Youngman. Enough to cover incurred taxes. But still several millions are needed to pay salaries for November and December and to secure a continued reconstruction. The coming days will see if Saab and its parent company Swedish Automobile will be able to secure the needed funding.
Saab confirms reception of first money installment from Youngman
Saab has just confirmed that the first money installment from Youngman has been received. Here's the statement:
This transfer is the first EUR 3.4 million of a short-term funding that is expected to be around EUR 30 million and be enough to cover incurred taxes and unpaid salaries for November and the coming salaries for December.
Saab's CEO and Chairman Victor Muller said to TTELA that this is a good sign:
"Yes, this is a goood sign. Youngman has transferred EUR 3.4 million to us."
Now the attention is on securing the remaining of the short-term funding promised by Youngman.
"Now, we are trying to work hard to pay salaries and to secure funding for salaries and keep the company in reorganisation," Eric Geers, spokesman of Saab, said.
Another piece of good news is that the Swedish Tax Authorities confirms that Saab has paid incurred taxes.
"They have paid their VAT now," said Margareta Åhrberg, duty officer at the Swedish Tax Authorities to TT.
"Saab confirms that the first payment in the funding promised by Youngman has now been transferred to the company's account. Efforts to secure the rest of the funding required to pay salaries and continue the reconstruction is moving step by step forward."
This transfer is the first EUR 3.4 million of a short-term funding that is expected to be around EUR 30 million and be enough to cover incurred taxes and unpaid salaries for November and the coming salaries for December.
Saab's CEO and Chairman Victor Muller said to TTELA that this is a good sign:
"Yes, this is a goood sign. Youngman has transferred EUR 3.4 million to us."
Now the attention is on securing the remaining of the short-term funding promised by Youngman.
"Now, we are trying to work hard to pay salaries and to secure funding for salaries and keep the company in reorganisation," Eric Geers, spokesman of Saab, said.
Another piece of good news is that the Swedish Tax Authorities confirms that Saab has paid incurred taxes.
"They have paid their VAT now," said Margareta Åhrberg, duty officer at the Swedish Tax Authorities to TT.
Monday, December 12, 2011
No Saab bankruptcy today
Earlier today it was reported that Saab's owner Swedish Automobile was preparing to file for bankruptcy in its Saab subsidiaries. But so far no bankruptcy filings have been handed in to Vänersborg District Court.
"A bankruptcy filing has not been submitted, that much I can say. But it is clear that it is a possibility if we do not come to a solution. Each day that passes is a day too much, especially without salaries paid. But Youngman is not out of the picture," Eric Geers, Executive Director Communications, said to TTELA.
According to different Swedish news providers, there is supposedly a disagreement in the Swedish Automobile board on how to proceed. Victor Muller is reported to have arrived in Stockholm this afternoon and ready to continue the work to save Saab. At the same time news reports say that if Saab has not paid incurred taxes by the deadline this evening or Saab does not file for bankruptcy today, Victor Muller can be held accountable for unpaid taxes. This could also be a reason why Martin Larsson, Executive Director New Business Development at Saab, today in an email to the company register office declared that he has left the board of Saab.
That would make Victor Muller the only member left in the Saab board. Presently (Monday evening) Victor Muller is reported to be in a meeting at the Swedish National Debt Office. It is unclear what the purpose of this meeting is.
There has been speculations that Youngman has paid the November salaries, but Saab says no money has so far been received by the company, but the salaries are a top priority.
"At this point, it is getting finance in order to first of all pay salaries and get going, but these salaries have not arrived. At this point nothing has arrived," a Saab spokesperson told just-auto.
But the spokesperson could confirm that there are still discussions with Youngman ongoing.
"There are discussions ongoing with Youngman and obviously it is taking far too much time, we know that. It is tough, it is very tough."
Since no bankruptcy filing has been handed in to the Vänersborg District Court today, one can assume that Victor Muller still believes that Saab can be saved, or at the very least that money to pay taxes and salaries will be raised in time.
According the Netherlands Authority For the Financial Markets, AFM, a press release from Swedish Automobile is expected shortly and therefore the trade in the SWAN stock has been suspended until further notice.
"A bankruptcy filing has not been submitted, that much I can say. But it is clear that it is a possibility if we do not come to a solution. Each day that passes is a day too much, especially without salaries paid. But Youngman is not out of the picture," Eric Geers, Executive Director Communications, said to TTELA.
According to different Swedish news providers, there is supposedly a disagreement in the Swedish Automobile board on how to proceed. Victor Muller is reported to have arrived in Stockholm this afternoon and ready to continue the work to save Saab. At the same time news reports say that if Saab has not paid incurred taxes by the deadline this evening or Saab does not file for bankruptcy today, Victor Muller can be held accountable for unpaid taxes. This could also be a reason why Martin Larsson, Executive Director New Business Development at Saab, today in an email to the company register office declared that he has left the board of Saab.
That would make Victor Muller the only member left in the Saab board. Presently (Monday evening) Victor Muller is reported to be in a meeting at the Swedish National Debt Office. It is unclear what the purpose of this meeting is.
There has been speculations that Youngman has paid the November salaries, but Saab says no money has so far been received by the company, but the salaries are a top priority.
"At this point, it is getting finance in order to first of all pay salaries and get going, but these salaries have not arrived. At this point nothing has arrived," a Saab spokesperson told just-auto.
But the spokesperson could confirm that there are still discussions with Youngman ongoing.
"There are discussions ongoing with Youngman and obviously it is taking far too much time, we know that. It is tough, it is very tough."
Since no bankruptcy filing has been handed in to the Vänersborg District Court today, one can assume that Victor Muller still believes that Saab can be saved, or at the very least that money to pay taxes and salaries will be raised in time.
According the Netherlands Authority For the Financial Markets, AFM, a press release from Swedish Automobile is expected shortly and therefore the trade in the SWAN stock has been suspended until further notice.
Youngman: "Deal close"
Earlier today it was reported that Swedish Automobile is preparing a bankruptcy application for Saab. It is unclear if the application will be handed in today or if it is only as a preaution should the negotations with Youngman not bear fruit. But it seems that Youngman still believes in a deal.
Rachel Pang, CEO of Chinese Youngman Automotives, has now according to Swedish news agency TT (as reported in TTELA) left Stockholm after intensive negotiations with Victor Muller. And to TT she says that the parties are close to an agreement and that money will be transferred to Saab.
"We will soon finalize our agreement," she said in a telephone interview with TT, but would not go into the details.
When asked by TT why the negotiations haven taken so long and when a deal will be finalized, she answered the following:
"It is a comprehensive agreement. We're working on finalizing it. It will be done."
"Money will be transferred to Saab," said Rachel Pang before hanging up.
Rachel Pang, CEO of Chinese Youngman Automotives, has now according to Swedish news agency TT (as reported in TTELA) left Stockholm after intensive negotiations with Victor Muller. And to TT she says that the parties are close to an agreement and that money will be transferred to Saab.
"We will soon finalize our agreement," she said in a telephone interview with TT, but would not go into the details.
When asked by TT why the negotiations haven taken so long and when a deal will be finalized, she answered the following:
"It is a comprehensive agreement. We're working on finalizing it. It will be done."
"Money will be transferred to Saab," said Rachel Pang before hanging up.
Swedish DI claims: "Saab to declare bankruptcy today"
Swedish Dagens Industri claims that Victor Muller and Saab will go to the Vänersborg District Court this afternoon to request that the court declare the company bankrupt. DI reports that this has been confirmed by several independent sources.
Swedish Radio P4 Göteborg's source say that Swedish Automobile is preparing a bankruptcy application, but it is uncertain when and if it will be sent to the court.
Swedish news agency TT does however report that their sources say that no decision concerning bankruptcy has been taken.
Martin Larsson, Executive Director New Business Development, would neither confirm nor deny the information.
"I have no comments," was his only answer when Dagens Industri talked to him.
Local Trollhättan newspaper TTELA has also been in touch with its sources who say that the negotations with Youngman is still ongoing and that there are no plans to apply for bankruptcy yet.
Head of the labour union Ledarna at Saab, Thomas Haglund, calls the latest news rumors.
"It is only rumors. I know that they were in Stockholm negotiating during the weekend. We will have to wait and see if there will be any news during the day. The result can just as well be the opposite," Thomas Haglund said according to Svenska Dagbladet.
My assessment is that they probably are preparing a bankruptcy application just in case. If the negotiations do not bear fruit, then they need to be prepared for the next and final step.
Swedish Radio P4 Göteborg's source say that Swedish Automobile is preparing a bankruptcy application, but it is uncertain when and if it will be sent to the court.
Swedish news agency TT does however report that their sources say that no decision concerning bankruptcy has been taken.
Martin Larsson, Executive Director New Business Development, would neither confirm nor deny the information.
"I have no comments," was his only answer when Dagens Industri talked to him.
Local Trollhättan newspaper TTELA has also been in touch with its sources who say that the negotations with Youngman is still ongoing and that there are no plans to apply for bankruptcy yet.
Head of the labour union Ledarna at Saab, Thomas Haglund, calls the latest news rumors.
"It is only rumors. I know that they were in Stockholm negotiating during the weekend. We will have to wait and see if there will be any news during the day. The result can just as well be the opposite," Thomas Haglund said according to Svenska Dagbladet.
My assessment is that they probably are preparing a bankruptcy application just in case. If the negotiations do not bear fruit, then they need to be prepared for the next and final step.
Friday, December 9, 2011
Discussions continue
Yesterday was a quiet day in the world of Saab. We know that key people from Swedish Automobile and Saab are still in discussions with key people from Youngman and an undisclosed Chinese bank.
Yesterday afternoon Victor Muller confirmed to TTELA that discussions continue. TTELA also writes that they interpret Victor Muller as being optimistic.
As reported earlier, the aim now is to reach an agreement which can allow the Chinese to fund Saab, but without taking any ownership in the company. At the same time the Chinese do of course want some sort of guarantee or security that they eventually will get value for money put into Saab.
I do not know if we should expect anything before the weekend is over. But one thing that is certain, is that if Saab wants to continue the reconstruction, then a deal that guarantees funding must be ready before Thursday (corrected from Tuesday) next week. That is the time frame Saab has to give its response to the application from Guy Lofalk asking Vänersborg District Court to end the reconsteruction.
Yesterday afternoon Victor Muller confirmed to TTELA that discussions continue. TTELA also writes that they interpret Victor Muller as being optimistic.
As reported earlier, the aim now is to reach an agreement which can allow the Chinese to fund Saab, but without taking any ownership in the company. At the same time the Chinese do of course want some sort of guarantee or security that they eventually will get value for money put into Saab.
I do not know if we should expect anything before the weekend is over. But one thing that is certain, is that if Saab wants to continue the reconstruction, then a deal that guarantees funding must be ready before Thursday (corrected from Tuesday) next week. That is the time frame Saab has to give its response to the application from Guy Lofalk asking Vänersborg District Court to end the reconsteruction.
Wednesday, December 7, 2011
General Motors never interested in negotiation
The court appointed administrator of the Saab reconstruction, Guy Lofalk, who today applied to Vänersborg District Court to terminate the reconstruction, says in an interview with Dagens Industri that General Motors (GM) was never interested in negotiating over letting new owners into Saab.
According to Lofalk, GM rejected several solutions and the attitude of GM has been part of the reason that he today applied for a termination of the reconstruction.
"There are several factors, but GM's stubborn attitude is obviously an extremely important factor. But the reason we stand here now is because we have run out of money - it is a mathematical and legal decisions we have made, " Lofalk said to DI.
Guy Lofalk himself has been to the USA and met with GM in an attempt to find a solution that the giant car company could accept.
"We tried various ways to get information on how we could structure a proposal which GM could accept, but we got absolutely no guidance at all," says Lofalk, who was surprised by the tough attitude from GM.
"Generally speaking, I was surprised by GM's very stubborn attitude. In principle they just repeated the same sentence, that there are extremely high barriers and that they see no way forward. We even asked GM: "Can you please tell us how you want it?' And they would not give us any response at all. They did not even open to a negotiation."
According to Lofalk, GM rejected several solutions and the attitude of GM has been part of the reason that he today applied for a termination of the reconstruction.
"There are several factors, but GM's stubborn attitude is obviously an extremely important factor. But the reason we stand here now is because we have run out of money - it is a mathematical and legal decisions we have made, " Lofalk said to DI.
Guy Lofalk himself has been to the USA and met with GM in an attempt to find a solution that the giant car company could accept.
"We tried various ways to get information on how we could structure a proposal which GM could accept, but we got absolutely no guidance at all," says Lofalk, who was surprised by the tough attitude from GM.
"Generally speaking, I was surprised by GM's very stubborn attitude. In principle they just repeated the same sentence, that there are extremely high barriers and that they see no way forward. We even asked GM: "Can you please tell us how you want it?' And they would not give us any response at all. They did not even open to a negotiation."
Saab seeks EUR 600 million bank loan from Chinese bank
Updated December 8th 8:02, with info from TTELA and statements by Geers
According to Automotive News China, Saab is in discussions with Youngman and a Chinese bank over borrowing about EUR 600 million (5 billion yuan) over two years. Automotive News China reports that Saab's CEO Victor Muller has said this in a phone interview today.
"We're working on another structure where we don't need to get the consensus from General Motors, because they don't want to give it. The transaction involves loans and no shares," Victor Muller said according to Bloomberg.
"We don't have much time, very few days to reach a deal that will convince the court to retain the protection against creditors," Muller said.
"The stakes are so high I think we'll be able to reach an agreement," Muller said. "Of course it's a far cry for Youngman from where they were, but their impressive commitment to Saab has led them to rather fund the company and not be a shareholder at this time than to see it go down."
Muller also said that Saab will ask the court to remove Lofalk as administrator.
Local Trollhättan newspaper TTELA writes Thursday morning that they have learned that there are solutions on getting such a loan approved by Chinese authorities. And Saab tells TTELA that there was progress made yesterday at the negotiations in Stockholm, which can solve the problem with the unpaid November wages.
"Anything can happen, but in the current situation I think it will work out for Saab," Eric Geers, Executive Director Communications, said.
"Youngman is very keen to solve this, they believe in it, or else they would have walked away long time ago," said Geers.
According to Automotive News China, Saab is in discussions with Youngman and a Chinese bank over borrowing about EUR 600 million (5 billion yuan) over two years. Automotive News China reports that Saab's CEO Victor Muller has said this in a phone interview today.
"We're working on another structure where we don't need to get the consensus from General Motors, because they don't want to give it. The transaction involves loans and no shares," Victor Muller said according to Bloomberg.
"We don't have much time, very few days to reach a deal that will convince the court to retain the protection against creditors," Muller said.
"The stakes are so high I think we'll be able to reach an agreement," Muller said. "Of course it's a far cry for Youngman from where they were, but their impressive commitment to Saab has led them to rather fund the company and not be a shareholder at this time than to see it go down."
Muller also said that Saab will ask the court to remove Lofalk as administrator.
Local Trollhättan newspaper TTELA writes Thursday morning that they have learned that there are solutions on getting such a loan approved by Chinese authorities. And Saab tells TTELA that there was progress made yesterday at the negotiations in Stockholm, which can solve the problem with the unpaid November wages.
"Anything can happen, but in the current situation I think it will work out for Saab," Eric Geers, Executive Director Communications, said.
"Youngman is very keen to solve this, they believe in it, or else they would have walked away long time ago," said Geers.
Subscribe to:
Posts (Atom)