• May 2nd 2011 at 2:00PM
  • 13
Production at Saab's Trollhättan, Sweden plant has been shut down for weeks due, as these things often are, to a lack of cash needed to pay suppliers. That should change in the next week, though, as Saab parent Spyker has announced that it has secured a convertible loan agreement with Gemini Investment Fund Limited worth 30 million euros.

The Swedish automaker says the loan will help reboot the plant, but Saab is also counting on a 29.1-million-euro draw-down from the request to the European Investment Bank, which will reportedly arrive next week. With both loans, Saab says in the post-jump press release that it will be able to resume production at Trollhättan, pending a delivery schedule agreement with suppliers.

The loan, which matures in six months and carries a seven-percent interest rate, will act only as a stopgap measure to enable a production restart. Saab is reportedly also trying to strike a deal with a Chinese automaker to help stabilize its operations and provide much-needed funding. Saab is said to be continuing to work out a deal with Russian businessman Vladimir Antonov, who hopes to own 30 percent of the automaker. Hit the jump to read over the press release.
Show full PR text
Trollhättan, Sweden: Spyker Cars N.V. (Spyker) announces that it secured the short-term funding of Saab Automobile AB (Saab Automobile) by entering into a EUR 30 million convertible loan agreement with Gemini Investment Fund Limited (Gemini).

Spyker entered into a EUR 30 million convertible loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 7% per annual and the conversion price is EUR 4.88 per share.

In addition to the receipt of EUR 30 million from Gemini, Saab Automobile will make a drawdown request to the EIB for an amount of EUR 29.1 million. As a result of the convertible loan and the EIB draw down - which is expected next week – Saab Automobile secured an amount of EUR 59.1 million. With the receipt of these funds, Saab Automobile secured the liquidity that is required to restart production.

Saab Automobile aims to restart production within a week, pending agreements on delivery schedules with its suppliers. In order to improve lead times to customers and dealers on existing and future orders, Saab Automobile will work together with its suppliers to minimize any impact from the recent production stop.

Spyker and Saab Automobile continue to work on securing medium and long term funding.

Victor Muller, CEO of Spyker and Chairman of Saab Automobile said: "I would like to apologize to our dedicated employees, suppliers, dealers and customers for the disruptions of the past weeks. We will do everything in our power to restore the confidence in our company as soon as practically possible."

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    • 1 Second Ago
      • 4 Years Ago
      Is it me, or does Autoblog use this picture for anything GM related? I think I've seen that image repeated before. Anyway, Saab can stay. It is a cool brand, just really understated.
        • 4 Years Ago
        yeah, I'm guessing this photo is at least 5 years old, judging by the cars in the photo. I'm also guessing that the factory also served as a distribution center for GM, since. for a Saab factory, there are a lot of Cadillacs in the photo ...
      Mike Pulsifer
      • 4 Years Ago
      I'm seeing a lot of Cadillacs in that photo...
      • 4 Years Ago
      SAAB is doomed...im suprised they have lasted this long
      Logan Wild
      • 4 Years Ago
      Wasting their time! Time to kill the brand.
      • 4 Years Ago
      If anyone has any money involved with Gemini Investment Fund Limited, take it out now because they clearly don't know what to do with it. Yes, I liked the old Saab from the '80s and '90s as much as anyone, but in the past ten years the best Saab has been a re-badged WRX. The company is done.
        John S
        • 4 Years Ago
        Having owned a 9-2x (for all of 8 months) I beg to differ.
      • 4 Years Ago
      I'm really pulling for Saab. I don't know if they have the capital to pull this off long term, but I like Spyker's product plans (hatchback 900!) . It's sure hard to undo all the damage GM did to the brand though.
      • 4 Years Ago
      Meanwhile Japanese auto sales cut in half in April TOTAL 108,824 (-51.0) Cars 97,128 (-51.5) Trucks 11,277 (-45.9) Toyota Motor 37,213 (-68.1) (Toyota had the biggest drop from 116,655 in April 2010) - Toyota brand 35,557 (-68.7) - Lexus 1,656 (-44.7) Nissan Motor 17,413 (-37.2) Honda Motor 18,293 (-48.5) Mazda Motor 6,598 (-38.8) Mitsubishi Motors 3,515 (-20.1) Suzuki Motor 4,288 (- 9.8) Fuji Heavy 3,806 (+13.1) Imports 16,627 (+42.8)
      • 4 Years Ago
      • 4 Years Ago
      The borrower and the lender need to do the calculation to see how long it will take for the effect of the lower interest rate to make up for the cost of the refinance, read more about refinancing your home at "123 Mortgage Refinances"
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