Saab finally rescued from bankrupcy
Saab's owner Swedish Automobile NV (SwAN) has today annoounced that a deal to sell the Swedish car firm to Chinese investors Pang Da and Youngman has been agreed. Pang Da and Youngman have signed a memorandum of understanding with SwAN to buy 100 per cent of Saab Automobile and Saab Great Britain for €100 million.
For most of this year, Saab has been teetering on the edge of bankrupcy, with suppliers, staff and executives going unpaid for many months. Many thought that there was no waythe company could be rescued, but with this new deal there finally seems to be a light at the end of the tunnel.
The deal yet needs the approval of Chinese authorities and Swan's shareholders, and the precise terms of the share purchase agreement still have to be thrashed out, but this is as close as you can be to a deal without money and contracts having changed hands. The 100 million euros will be paid in instalments.
In a statement, Swan said "an important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long-term funding to Saab Automobile".
The administrator in Saab Automobile’s voluntary reorganisation, Guy Lofalk, has withdrawn his application to exit reorganisation. The memorandum of understanding is valid until November 15, but is dependent on Saab Automobile staying in reorganisation.
Once this deal is finalised, Saab can get on with doing what it should have been doing all along - making cars. There is a the 9-5 Sportwagon to be launched along with an all-new 9-4 sports SUV. Both have been fully engineered and tested, and are simly waiting to go into production.
As a company that never truly conforms to the norm and makes quirky products, we're glad Saab will be staying around.