The agreement between Swedish Automobile and two Chinese investors — Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. officially expires today, but the automaker advises talks will continue between all parties.
According to Bloomberg, one option still on the table is liquidation of all of its assets to pay off Saab’s $186 million debt.
“All parties have agreed to continue the discussions, but they won’t officially sign a new agreement,” said Gunilla Gustavs, spokeswoman at Saab Automobile.
The transactions – Saab for 100 million, and Spyker for 32 million – are set to raise a combined 132 million euros, though that amount is insufficient to cover the company’s debts of 136.5 million euro ($186 million).
In order to make up for the cash shortage, Swedish Automobile is looking at all options. One possibility we previously reported on is the sale of Spyker to North Street Capital LP, a Connecticut-based private equity firm.
Saab has been operating under creditor protection while trying to restructure its operations for a second time since being put up for sale by GM in 2009.
Production has been suspended since April due to a lack of sufficient funds to pay suppliers and employees.