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.

Wednesday, December 7, 2011

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.