Saab confirmed in a statement this morning that Youngman has issued the first payment, reportedly around $15 million, of a $97 million bridge loan that will help keep the Swedish automaker solvent during its reorganization while it waits for both Chinese and Swedish authorities to approve a much larger investment of about 245 million Euro by Youngman and fellow Chinese carmaker Pang Da. Saab expects it will have the full $97 million loan in hand by October 22.
Saab sounds confident that both governments will approve the investment, though Chinese authorities have sunk deals like this before by dragging their feet or refusing to grant approval. A similar investment deal by China's Hawtai Motor Group was abandoned earlier this year for a number of reasons, chief among them the government's inability to approve the transaction in time.
Trollhättan, Sweden: Management of Swedish Automobile N.V. (Swan) and Saab Automobile AB (Saab Automobile) confirm that the reorganization is progressing and that a first payment by Youngman under the bridge loan funding commitment as announced on September 12 was received by Saab Automobile.
Further payments under the amended and final bridge loan agreements signed between Youngman and Saab Automobile are expected to be made during this week and by October 22 of this year. It is the intention to repay the bridge loan with the proceeds of the EUR 245 million equity investments by Youngman and Pang Da, which are still subject to approval by relevant authorities and parties which Swan expects to receive during the next weeks.