Saab has announced that it has received a financial commitment from U.S.-based North Street Capital. The offer has arisen over doubts that the deal previously brokered with Chinese automakers Pang Da and Youngman will actually come to fruition. Saab intends to accept the new offer from its U.S. suitor.

The deal commits North Street Capital to 2,386,635 ordinary shares of Swan at $4.19 per share. In addition, North Street will loan Saab $60 million in exchange for a first lien on certain Saab assets as collateral. The deal is set to be inked no later than Monday, October 24.

Originally, Saab was set to receive the full bulk of the $97 million promised by Pang Da and Youngman on Saturday, October 22. Even so, there seems to be some trepidation from the automaker about whether or not those funds will materialize, and Saab says that it needs immediate funding to stave off an implosion. Hit the jump for the press release.
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SWEDISH AUTOMOBILE RECEIVED COMMITMENT FROM NORTH STREET CAPITAL ON FUNDING

Zeewolde, The Netherlands, 20 October 2011 - Swedish Automobile N.V. (Swan) announces it has received a commitment from North Street Capital, LP (North Street) on the funding of Swan and Saab Automobile AB (Saab Automobile).

The offer consists of the following transactions:

Subscription to 2,386,635 ordinary shares in the capital of Swan at a price of USD 4.19 per share for the purpose of funding the working capital of Swan, Saab Automobile and Saab Great Britain Ltd. The shares to be issued will be paid in full by Friday October 21, 2011.

Procurement of a loan to Saab Automobile in the amount of USD 60 million to 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. This loan is subject to further documentation. The object of the parties is to finalize documentation no later than Monday October 24, 2011 with subsequent funding within two days thereof.

Swan 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. Immediate availability of funding is necessary to continue the reorganization process of Saab Automobile.