Filed under: Europe, Government/Legal, Saab, Earnings/Financials, UAW/Unions
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Saab fans: Go find yourself a hat, and hold the hell on to it - we have a feeling this ride is about to get a wee bit bumpier.
First, Saab has confirmed that Swedish unions Unionen and Ledarna have officially filed for bankruptcy of Saab Automobile. That’s par for the course and anything but a surprise, as it seems the automaker owes just about everyone some money. These unions represent white-collar workers who have not been paid by Saab for the month of August.
Second, the automaker has, as had been planned, “lodged their appeal against the District Court’s decision last week to reject Saab Automobile’s proposal for voluntary reorganization.” Basically, Saab’s creditors are suing the company for various amounts owed, and these sums would be sufficient to bankrupt and close down the automaker. Saab asked for government protection from these creditors, which was subsequently denied. The automaker is appealing that decision.
Finally, Saab says it has secured a bridge loan worth $96 million from a heretofore unknown legal entity known as Specialty Purpose Vehicle. Zhejiang Youngman Lotus Automobile (which we’ll mention again in the next paragraph) has signed an agreement with the aforementioned SPV to license certain technologies from the legal entity.
This $96 million bridge loan would supposedly be paid back by the $352 million deal](http://www.autoblog.com/2011/06/13/saab-signs-second-partnership-with-chinas-youngman/) that Saab had previously signed with Chinese partners Pang Da and Youngman - and yes, that’s the same company that is apparently licensing technology from SPV under this latest agreement.
Is your head spinning yet? We don’t blame you… and all of these deals are still awaiting approval from Chinese authorities, which is anything but guaranteed. Feel free to peruse the trio of press releases after the break for all the official details from Saab.Continue reading Saab secures $96M bridge loan, lodges appeal as unions push for bankruptcy
Saab secures $96M bridge loan, lodges appeal as unions push for bankruptcy originally appeared on Autoblog on Mon, 12 Sep 2011 16:29:00 EST. Please see our terms for use of feeds.
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