Zeewolde, The Netherlands – Swedish Automobile, the parent company of Saab, has received a commitment on new funding, but has also been informed that an application has been made to terminate its voluntary reorganization.
Swedish Automobile (Swan) received a commitment from North Street Capital to fund Swan and Saab Automobile AB. The offer includes subscription to shares to fund the working capital of Swan, Saab Automobile and Saab Great Britain by October 21, and a US$60 million loan to Saab to be collateralized by liens on assets.
Swan said it intends to accept the offer because it has doubts that the bridge funding of Chinese partners Youngman and Pang Da, of which a partial payments has been received, will be paid in full on October 22. The company requires immediate availability of funds to continue its reorganization process.
In a separate statement, Saab said that Guy Lofalk, administrator of the reorganization, intends to apply for termination of the voluntary reorganization of Saab and two of its subsidiaries, at the Swedish court in Vanersborg.
Saab said that the termination intent comes in spite of the funding commitment from North Street Capital. The automaker said it will contest the application and request for continuation of the voluntary reorganization process, and will simultaneously apply at the court to have Lofalk replaced as administrator.