All three members of the Swan supervisory board resigned due to a "difference of opinion" with the company's CEO, Victor Muller over funding alternatives. Shares in the automaker have since plummeted by around 12 percent. The company's articles of association allow for the holder of a single priority share in the company to name new board members. In this case, that holder is believed to be controversial Russian tycoon Vladimir Antonov.
Click past the break for two press releases on the recent changes at Swan.
SWEDISH AUTOMOBILE ISSUES SUBSCRIPTION NOTICE UNDER GEM FACILITY AND GIVES FURTHER UPDATE
Zeewolde, The Netherlands, 18 January 2012 - Swedish Automobile N.V. (Swan) announces today that it issued a subscription notice for 2.5 million shares under the current EUR 150 million equity facility between Swan and GEM Global Yield Fund Limited. The exact number of shares to be issued and the price thereof will depend on the pricing period which commences today.
Swan is currently in negotiations about the sale of the Spyker business. As an alternative, Swan is exploring the options to finance its current operations and continue the Spyker business as part of Swan. The future of Swan will depend on the outcome of these negotiations with the seller or a possible financier for the Spyker business. Should the sales transaction above be effected, management of Swan will consider all options for Swan, including an orderly, phased wind-down of the company. The exact use of the proceeds under this scenario depends on the negotiations with the different stakeholders of Swan (i.e. creditors, lenders, etc.). Based on the current situation, the proceeds of the sale would not allow Swan to meet its liabilities in full.
If Swan is not able to complete a sale of the Spyker business or otherwise secure further financing for Spyker and/or Swan, management will likely not be able to safeguard the continuity of Swan.
The fact that there are currently not yet final binding agreements in place with the purchasers of the Spyker business leads to uncertainty with respect to the completion of the various transactions described above and thus the future of Swan and any settlement with stakeholders. In order to continue its activities, it is critical that funding is secured, amongst others by means of the GEM facility.
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SWEDISH AUTOMOBILE ANNOUNCES CHANGES IN SUPERVISORY AND MANAGEMENT BOARD
Zeewolde, The Netherlands, 18 January 2012 - Swedish Automobile N.V. ('Swan' or the 'company') announces the resignation of Mr. Hans Hugenholtz, Mr. Maurizio La Noce and Mr. Alex Roepers as members of the supervisory board of Swan as well as the resignation of Mr. Rob Schuijt as member of the management board of Swan with immediate effect. The decision to step down was made as a result of a difference of opinion with Swan's CEO Mr. Victor Muller as to the funding alternatives available to Swan after the recent bankruptcy of Swan's subsidiary Saab Automobile AB and the future of Swan and its remaining subsidiary Spyker.
Swan will propose new members for the supervisory board and the management board for appointment by Swan's shareholders' meeting in the foreseeable future.
Victor Muller, Swan's CEO said: "I would like to thank messrs Hugenholtz, Roepers, La Noce and Schuijt for their years of commitment to the company for which we are very grateful. With the loss of Saab Automobile AB, the company has seen a drastic change in its perspectives and it will have to adjust accordingly. We are currently assessing the options available to Swan and discussions on a possible sale of the Spyker business are ongoing. However, retaining the Spyker business under Swan and expanding that business through acquisitions is an alternative we are considering."