Earlier today, Swedish Automobile N.V. and Saab received some fantastic news only to have smashed to bits. An American investment company, North Street Capital, LP, committed to invest into the manufacture to help with their desperate need for short term funding. North Street made plans to subscribe to 2,386,635 shares at $4.19 per share and loan Saab $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 National Debt Office.” The shares were to be paid in full by October 21 while the loan was to be issued by October 24. Swedish Automobile N.V. fully intended to accept the loan and its agreements due to the company’s doubts about the funding from Pang Da and Youngman. It would appear, that for a breif time, Saab was going to make it. Then something happened that put them back in the ring swinging.
Not a few hours after the announcement was made, the Swedish administrator of reorganization, a Mr. Guy Lofalk, filed for the termination of Saab’s voluntary reorganization. This is even in the recentl light of the planned investment made by North Street Capital. Saab fully intends to contest the application for termination and request they continue on with their plan of attack. The company also plans to go after Lofalk, saying that they “shall apply at the court for replacement of Mr. Lofalk as administrator.”
Source: Saab
