Youngman Lotus Lends Saab Helping Hand, Sends Infusion of Cash

The outlook didn’t look so good for Saab until now, as Youngman Lotus Automobile has finally taken the first step in saving the Swedish automaker with a payment that may affect the outcome of the court hearing on December 16 that will determine its future.

Youngman has given Saab about 34.5 million Euros (about $5 million U.S. dollars) to cover immediate tax expenses, Reuters reports. Victor Muller, chief executive of Swedish Automobile also told Reuters, “We are working on the documentation for further funding adequate to pay salaries and continue reorganization.”

The $5-million rescue payment may put the automaker in good graces with the Swedish courts, as Guy Lofalk, the court-appointed administrator of Saab’s voluntary reorganization, filed to put an end to the reorganization process last week. The process initially protects the company against creditors while the automaker continues to arrange a deal with the Chinese.

Last month, General Motors blocked the brand’s sale to Pang Da and Youngman Lotus Automobile after the two Chinese automakers sought to take complete ownership of Saab. The deal originally called for a combined 53.9 percent in Swedish Automobile between the two, with no stake in Saab.

We’ll have more on the developing Saab saga after the automaker’s court date on December 16.

Source: Reuters