At the end of last week we finally saw some progress in the continuing Saab Saga. Unfortunately, the progress was in the wrong direction for the slowly sinking Swedish auto maker. They got a quick shot of cash from a US investment firm which they backed up with unnamed collateral and then told the Chinese firms Youngman and Pang Da that they need to see the money sooner rather than later.
Turns out that Youngman and Pang Da weren't thrilled with the original deal to own 29.9 percent and 24 percent respectively for a combined $350 million and offered instead to buy 100% of Saab for an undisclosed sum. SWAN said the offer was "unacceptable."
This has lead Swan to terminate the original agreement immediately, but has left the door open for further negotiations with the two firms.
Unless Youngman and Pang Da can act in miraculously fast or North Street Capital comes up with about $200 million more in investment funding, this is going to look quite bad when Saab's Voluntary reorganization case is decided this Friday.
bodyblue says:
11:22 AM, 10/24/11
Saab should be the new sponsor for "The Walking Dead" since it is the Zombie of car companies. A stumbling rotting corpse of a car maker.