Saab Automobile AB (Saab Automobile) confirm that the reorganization is progressing and that a first payment by Youngman under the bridge loan funding commitment as announced on September 12 was received (EUR70 million) by Saab Automobile.
“We are now confident we have the money we need during the restructuring period,” said Gunilla Gustavs, spokeswoman at Saab Automobile.
Further payments under the amended and final bridge loan agreements signed between Youngman and Saab Automobile are expected to be made during this week and by October 22 of this year.
The funds are part of a 70 million euros loan planned by the two companies, until Chinese authorities approve a bigger investment by Youngman and China’s Pangda.
Saab Automobile AB (Saab Automobile) signed a Memorandum of Understanding (MoU) back in June with Pang Da Automobile Trade Co., Ltd (Pang Da), China’s largest publicly traded automobile distributor with over 1100 dealerships nationwide.
According to the memorandum, Youngman will take 29.9 percent stake in the company while Pangda will take 24 percent stake, for a combined 245 million euros.
However, the deal is likely to be blocked by the Chinese Government, sending Saab into bankruptcy, according to a report from Autocar.