Saab’s fortunes have taken a turn for the better after it received an offer of a share purchase and £40m loan from North Street Capital, an American equity firm – but the Swedish car maker faces a new threat to the voluntary reorganisation process it is undergoing.
Swedish Automobile NV (Swan), which owns Saab, has received a commitment from North Street Capital to buy 2,386,635 shares in Swan, a development that will generate about $10m (roughly £6.3m).
Those funds will be used for the purpose of funding the working capital of Swan, Saab Automobile and Saab Great Britain.
The shares to be issued will be paid in full by tomorrow (Friday 21 October). Immediate availability of the funding is necessary to continue the financial reorganisation of Saab Automobile, which is a process that is being carried out under Swedish law.
The Swedish firm has doubts over the funds it is due to receive from Chinese companies Youngman and Pang Da.
A statement from Swan said it “intends to accept this offer because it 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”.