NEWS: Report: Saab Story Continues, Swedish Automobile May Liquidate

By Christian Seabaugh - November 15, 2011
Swedish Automobile CEO Victor Muller 21
With the Saab drama continuing its owners, Swedish Automobile, are currently considering all options to make up for the cash downfall. According to Bloomberg, one option still on the table is liquidation of all of its assets to pay off Saab’s $186 million debt.
When we last checked in with the Saab saga, GM was threatening to revoke its technology licenses and halt production of the 9-4X should Saab be sold to Chinese automakers Pang Da and Youngman Lotus. According to a report by Bloomberg, even if the sale goes through, that might not be enough for Swedish Automobile (who also owns Spyker) to stay afloat.
The current deal has Saab selling to the two Chinese firms for 132 million euros ($181 million). Unfortunately for Swedish Automobile, Saab’s already in debt for 136.5 million euros, which is roughly $186 million. That leaves another $5 million still on the table...
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. Swedish Automobile has tentatively agreed to sell the Dutch sports carmaker to North Street Capital LP for 32 million euros, or about $44 million.
The other option, according to Bloomberg, is the voluntary liquidation of Swedish Automobile. Saab’s sale to Pang Da and Youngman Lotus is valid until November 15.
Source: Bloomberg
Swedish Automobile CEO Victor Muller 21

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