Saab Receives Funding from Spyker Buyer but not from Chinese Partners, Administrator Proposes to Terminate Reorganization

The dramatic Saab roller-coaster continues to painfully drag on with good and bad news for the brand. But let's take it in chronologically order.
This morning, Saab's parent company Swedish Automobile N.V. (Swan) said it has accepted new funding from U.S. private-equity group North Street Capital, which is interested in Spyker.
The equity firm is paying US$10 million for 2.39 million new shares Swan while also providing a further US$60 million as a loan that will be "collateralized by a first lien on certain assets of Saab Automobile as well as a second lien on the collateral as pledged to NDO".
In the same announcement, Swan said it accepted the loan because the company "has doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on 22 October 2011".
Part three of today's Saab announcements is far more worrying as the administrator that handled the company's reorganization, Mr. Guy Lofalk, will apply for termination of the voluntary reorganization of Saab and two subsidiaries at the Swedish court in Vänersborg.
However, the Swedish automaker said in a statement that it will challenge the move:
"Saab Automobile shall contest this application and request for continuation of the voluntary reorganization process. Simultaneously, Saab Automobile shall apply at the court for replacement of Mr. Lofalk as administrator."

Read More

Spyker to be Sold to US-based Equity Firm for €32 million

Swedish Automobile N.V. [Swan] owner of cash-strapped Saab, announced today that it has reached an agreement with US-based private equity firm North Street Capital LP concerning the main terms for the sale of its Spyker luxury sports car business.

North Street Capital LP is based in Greenwich, Connecticut and its managing partner, Alex Mascioli, also doubles as a race car driver.





The Swedish company said it will receive €32 million ($43.6 million USD) “if and when the sale would become wholly unconditional”, adding that "since the Spyker assets arepledged to Tenaci Capital B.V. (Tenaci) the net proceeds of a sale will be used to redeem Swan's debt to Tenaci."
Swan CEO Victor Muller, who has sought to sell Spyker since February in order to focus on Saab, will remain as Spyker CEO in order to ensure the continuity of the carmaker's relationship with its customers.





The company notes, however, that there can be “no assurance” that the negotiations will be completed successfully and the final agreement will be reached on the already discussed or different terms.
Maybe that’s because Muller knows from his prior experience with Saab and Spyker and their former suitor, Victor Antonov, that it ain’t over until it’s really over…

Read More