2008 Saab 9-3 Convertible
The decision was made by Saab’s parent company Swedish Automobile in view of the fact that Pang Da and Youngman failed to confirm their commitment to a previous share subscription agreement made back in June.
Additionally, the Chinese partners also failed to meet explicit and binding agreements made earlier this month in relation to providing bridge funding to Saab while under reorganization.
You may recall that the court-appointed administrator of the reorganization, Guy Lofalk, doesn’t see much hope in saving Saab and sent a letter to Swedish courts last week requesting that the whole process be terminated.
His advice for Saab’s current owner would be to sell the automaker entirely to Pang Da and Youngman, an offer that was in fact made by the Chinese firms in the past few days. Pang Da and Youngman made the offer during discussions with Swedish Automobile, referring to changed circumstances since June when the subscription agreement was originally signed.
Swedish Automobile declined this offer, and with no reprieve from Pang Da or Youngman was forced to terminate negotiations. Importantly, the current developments do not influence the validity of the offer of American equity firm North Street Capital to buy up $10 million worth of Saab’s shares and provide a $60 million loan.
Stay tuned for further announcements. In the meantime, click here to follow our full coverage of Saab's financial woes.