Saab is set to receive a $10 million investment payment from North Street Capital by the end of today, and an additional $60 million loan is also planned. Meanwhile, the court administrator dealing with Saab’s reorganisation has put in an application to end the entire process and wants out as he does not believe the investments will help.
It’s all a bit of a soap opera with Saab: one minute the company is set for recovery the next its lifeline is being cut off. In the latest ‘episode’, North Street Capital, the US equity firm set to purchase Spyker Cars, has invested in Saab’s parent company Swedish Automobile in the order of obtaining 2,386,635 ordinary shares. At a single share price of $4.19, a total of around $10 million is set to come through by the end of today.
Additionally, North Street Capital has also arranged for a $60 million loan to Saab. North Street will receive collateral in some of Saab’s assets including collateral promised to the Swedish National Debt Office. The deal is expected to go through sometime next week.
In other more critical news, the court administrator in charge of Saab’s reorganisation, Guy Lofalk, has applied to courts to end the process. He says that even with the funds, it won’t be enough to save Saab. Lofalk said in a recent Reuters report,
“The money is not enough to continue the reorganisation. Now, an application [to terminate the reorganisation] has been mailed. It should be on the court’s desk tomorrow.”
Lofalk says despite the $70 million deal from North Street Capital, it would not be enough to save the company. He also said the $245 million investment promise from Pang Da and Youngman has failed to reach an agreement, despite plenty of interest from the Chinese companies.
Saab will apply for a request for continuation of the voluntary reorganisation process, and will be applying for a new court administrator to replace Lofalk.
Saab’s main lifeline, the investment from Pang Da and Youngman, is still awaiting a green light from Chinese authorities. Stay tuned for the next episode.