Saab’s race against time

Saab had an online game called Race Against Time a few years ago. A book as well, actually.
I bet they never thought they’d be racing against time for their own continued existence.
If I’m reading this correctly, the Gothenburg Post is reporting today that Saab may need to try and grease the rails to getting their EIB loan through the system. The dilemma appears to be as follows:

  • Saab’s current three-month reconstruction period ends August 20. I don’t think they want to apply for another one.
  • They need around $1billion to keep operating, a sum that includes the $600 million they’d get from the EIB, backed by the Swedish government.
  • The EIB possibly can’t meet and consider new loans until September – which is after Saab’s current reconstruction period ends.

This means that Saab’s new owners might be called upon to exhibit the ‘financial strength’ they’ve been talking about the last few days. Saab may need some bridging finance to get them through if they come out of reconstruction in August and need to be carried through to loan approval in September.
Saab are going to do everything they can to try and make this easy for the government and the EIB. They will provide all info and representatives from the Koenigsegg Group are going to meet with the government today, prior to getting sloshed for Midsommar.
It’s just another hurdle on the way to independence. That first new Saab under Koenigsegg’s direction is going to taste so sweet after all this trouble!

It should be noted here that in another article, in TTELA, that both Jan-Ake Jonsson and Guy Lofalk state that Saab have enough money to get through.
The EIB money can not be used to pay existing debts, nor could it be used for normal production expenses. As I understand it, that money has to be used for investment in technologies that can improve the efficiency of the cars they design. Saab plan to use it in between 60 and 70 different projects.

Thanks Per!