At the 11th hour, Chinese investors Pang Da and Youngman have agreed to buy over 100% of Swedish auto maker, Saab thus saving the debt-ridden company from bankruptcy. The purchase price – €100 million or $142 million. Victor Muller, Chief Executive of Saab said, “After the better part of seven months of agony for the company we have come to a point where we can proudly say that we made it.” As part of the deal, the Chinese companies have also agreed to provide long term funding.
Altogether, Pang Da and Youngman will inject €245 million into the company in a deal including joint ventures and buy up about half of Saab’s shares. In addition, the Chinese will also provide a bridging loan of €70 million to tide the company over during a three month restructuring that began in September.
Saab had been granted approval for 3 months of renegotiation of debts and funding during which it will be protected from creditors and avoid filing for bankruptcy. Just last week, Saab’s court appointed administrator, Guy Lofalk applied to have Saab’s bankruptcy protection lifted, a move that would have opened the way for creditors to claim against the company and pave the way for bankruptcy. At that time, talks with the Chinese had fallen through after Saab’s owners, Swedish Automobile rejected Pang Da and Youngman’s initial offer of $30.4 million to buy over the company.
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