Letters of Support From Pang Da and Youngman

As part of Saab’s appeal today, Pang Da and Youngman have both submitted letters to the court explaining their belief that the deal will go through. They back it up with tables showing the process, and what levels of that process are complete. Read the letters and see those charts after the break.

Letter of Support 

Pang Da Automobile Trade Co., Ltd.

Date:             11 September 2011

To:                 Saab Automobile Group

 

Dear Sirs,

Letter of Support relating to the Funding Requirements of Saab Automobile Group 

We, being one of the purchasers under a binding Share Subscription Agreement and a Shareholders Agreement relating to the proposed investment in Swedish Automobile N.V., the owner of Saab Automobile Aktiebolag, refer to the funding requirement of Saab Automobile Aktiebolag and its subsidiaries to resume and further develop its operations.

To the best of our knowledge, we have no reason to believe at this juncture that the applicable approval process with the Chinese authorities would not be completed nor that there would be unexpected delays.

We are confident that the companies we invest in will be able to generate positive returns in the future. We reiterate the fact that we are impressed by the well proven technical skills of Saab Automobile Group, as well as its strong brand, high quality products, and knowhow, and we see a significant potential for Saab in the Chinese market, and in turn would translate into a huge potential for the Saab Automobile Group as a group in the future. Our involvement is based on the conviction that the brand is well positioned to meet demand in markets around the world, and China in particular.

We believe that the efforts and initiatives that we have discussed and planned in depth with Saab over the summer for developing the Chinese market would go a long way in helping and supporting Saab in achieving its overall profitability. This letter is provided as evidence of our commercial interest in and our involvement with the Saab Automobile Group and its business activities.

This letter is addressed to Saab Automobile and is not intended to create any legal relationship, rights, or obligations with yourselves nor with any other parties, nor do we intend for this letter to be relied upon by any party. Additionally, this letter is specifically not a guarantee nor any instrument having similar effect.

 

Yours faithfully,

 

For and on behalf of

Pang Da Automobile Trade Co., Ltd.

 

Zhejiang Youngman Lotus Automobile Letter of Support 

Zhejiang Youngman Lotus Automobile

Date:            12 September 2011

To:               Saab Automobile Group

Dear Sirs,

Letter of Support relating to the Funding Requirements of Saab Automobile Group 

We. Youngman Group is headquartered in Zhejiang province of China, owning and managing three group companies, which include commercial cars group, passenger cars group and passenger coach group. Our group employs approximately 8,000 people now, and we are the largest auto makers in the top-tier bus and coach market and our sales account for 85 to 90 percent of the market.

Our group, being the party of a binding Share Subscription Agreement and a Shareholders Agreement relating to the ownership of Swedish Automobile N.V., the owner of Saab Automobile Aktiebolag, refer to the liquidity crisis, application for Reorganization and funding requirement of Saab Automobile Aktiebolag and its subsidiaries to resume and further develop its operations.

To our best knowledge, no circumstances come to our attention that makes us believe that the applicable investment approval process with the Chinese authorities for our involvement in Saab Automobile Aktiebolag will not be completed and approved as outlined in Appendix 1. Once our initial investment is completed and approved, we intend to, together with the other owners, refinance the existing capital structure. With our good relationship with a number of Chinese financial institutions we intend to attract additional funding to provide adequate capital structure of both equity and debt. It is furthermore our policy to financially support the companies we invest in and ensure that the companies we get involved in generate positive returns on invested capital. We have already invested a considerable amount of money to support Saabs ways out of financial difficulties awaiting our equity injection. As part of the investment process we have, of course, made a detailed due diligence of the Saab Automobile Group which resulted to our satisfaction.

In addition, we have participated in a binding [70 Million Euro] bridge funding arrangement to help Saab Automobile Group to obtain liquidity from a reputable German and international bank. The schedule for that arrangement is outlined in Appendix 2. Once our initial investments are completed and approved, it is our policy to support that the companies we get involved in generate positive returns on invested capital. The well proven technical skills of Saab Automobile Group, as well as the strong brand, high quality products, and knowhow give that we see significant potential for the Saab Automobile Group in the future. Our involvement is based on the conviction that the brand is well positioned to meet demand in markets around the world, and China in particular. We fully support the sales forecasts that show that profitability will be achieved.

This letter is provided only as demonstration of our true commercial interest in and involvement with the Saab Automobile Group and its business activities. It is not intended that any legal relationship with yourselves is established hereby and this letter is specifically not a guarantee.

 

Yours faithfully

For and on behalf of

Zhejiang Youngman Lotus Automobile 

 

lundin
Member
5 years 12 days ago

Perfect! Thanks PangDa and Youngman!

lundin
Member
5 years 12 days ago

One question thought,shouldn’t the item 4 “approve Local DRC” in Appnedix 1 be marked DONE by the time it was copied ?

ANA
Member
5 years 12 days ago

Looks good. If Saab is granted reorganisation status then it would be interesting to know exactly what the 70million will be used for. Looking at the plans it would seem that suppliers have to wait until mid Nov to get their cash.

katar1na
Member
5 years 12 days ago

Wow. That should be gift wrapped!

I really would like to see the face of the swedish representative in China…

lundin
Member
5 years 12 days ago

Or even the faces of the local court people ruling out the chinese partners as “nuffin” and parentheses in the first application 48h or so ago.So much for their analytically skills.

MarkoA
Member
5 years 12 days ago

This is all very good and really shows VM has done excellent job seeking funding for Saab.

kochje
Member
5 years 12 days ago

+1

Saabim
Member
5 years 11 days ago

1*** 🙂

Troels, Denmark
Member
5 years 12 days ago

Well done VM, Pang Da, Youngman, Saab!

Quixcube
Member
5 years 12 days ago

That reminds me of the friends who show up and take you home after you have had too much to drink at a party. Yes, officer. I know, officer. We will get him home now. Don’t worry about the mess we’ve got that covered already.

We love those friends.

Pedro
Member
5 years 12 days ago

Though these are, of course, non-binding documents, it’s about time they officially stated something.

Audun
Member
5 years 12 days ago

Great! Thank you! 🙂

SpinM
Member
5 years 12 days ago

Great initiative from both Pang Da and Youngman. Now, this simply has to work for Saab. Anything else would be unthinkable.

900 classic cab
Guest
5 years 12 days ago

+1 !

akis96
Member
5 years 12 days ago

Thanks 🙂

Ruben NL
Member
5 years 12 days ago

A kind gesture, showing Asian politeness.
Just look at the disclaimers.

But: it can be usefull in court and therefore: Thank you, Chinese friends.

talladegan
Member
5 years 12 days ago

A little earlier this summer but this is encouraging reading regarding their vision of the JV:
LINK

talladegan
Member
5 years 12 days ago

(Link appears to be awaiting moderation?)

saabyurk
Member
5 years 12 days ago

Three Cheers to Pang Da and Youngman (and VM)!

mnztr
Member
5 years 12 days ago

To me I just do not see any reason to deny reconstruction. After all, it is not supposed to be a guranteed process, just that there is a resonable possibility of a positive outcome. If the Pang Da deal dies, I think it would be fair to give SAAB another 30 days and then yank it… but really, what more does one need?

Mark
Member
5 years 11 days ago

Supposedly Saab is getting good signs in Beijing. Good news.

http://www.chinacartimes.com/2011/09/13/saab-getting-good-signs-from-beijing/

Belfast_Saab
Member
5 years 11 days ago

very encouraging

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