Monday, October 17, 2011
Saab receives first part of £61.1m bridging loan
Saab has received the first bridging loan payment of €70 million (£61.1m) from one of its Chinese partners Zhejiang Youngman Lotus Automobile.
Further payments under the amended and final bridge loan agreements signed between Youngman and Saab are expected to be made during this week and by October 22 of this year.
Saab is now confident it has the money it needs to make it through its restructuring period.
Saab intends to repay its bridge loan within the next “few weeks” with the proceeds of the €245m equity investments from Youngman and its other Chinese investor Pang Da, which are still subject to approval.
Saab signed an agreement with Youngman on September 12 to borrow £61.1m in exchange for non-exclusive rights to Saab’s Phoenix architecture technology.
The Swedish brand won approval on September 22 to go into bankruptcy protection in order to restructure its business.
Saab hopes bankruptcy protection will give it time to secure new funding promised from Chinese investors.
Two Swedish unions had applied for the company to be declared bankrupt, because it has been unable to pay wages.
DATED: 17.10.11
FEED: AM
