Pang Da plans to raise funds

While checking the news about Saab today I ran into a Reuters article from last week. It states that Pang Da plans to raise up to $594 million through a bond issue. The money shall be used to pay off loans and strengthen the cash flow. Of course the issue has to be approved by the respective authorities.

Sure the money we’re talking about here is not directly to be used for the partnership with Saab. But I would dare to say that this is to some degree a move to prepare for the planned investments.

DUTCH900C
Member
5 years 6 days ago

This is very interesting news!

900 classic cab
Guest
5 years 6 days ago

+1

WM
Member
5 years 6 days ago

Looks like they are hedging against a SAAB wipe-out per Automobile.

Based on this: “set up some provisions against bad debt arising from our prepayment for the aforementioned vehicles according to Saab’s operational and financial conditions.”

Just sensible, don’t think it is overly significant.

Jeff
Member
5 years 6 days ago

It’s not that simple, WM. All we can really say at SU is this is a very positive sign that confirms what we’re hearing behind the scenes (thumbs up).

Remember how clueless commentary was just before Pang Da came onto the scene and Hawtai got the cold shoulder? Speculating on this will be just as fruitful. Just think positive thoughts and continue saving up money for a new Saab everyone, no need to ponder this one too hard. Let’s just wait and watch.

ivo 71
Member
5 years 6 days ago

At least that link connects to the rumors-page on that blog 🙂 . But, really… Pang Da is going to raise nearly 600 million US$ to cover a possible bad investment of 60 million US$? While they have a few nice buildings in central London (real estate owned by Saab UK, worth lots of money) as surety against default by Saab? I kinda doubt it…

Ivo

davidgmills
Member
5 years 6 days ago
Something is fishy here. Pang Da puts up $60 million knowing Saab is in serious financial straits and orders $60 million worth of cars. Saab fails to deliver and now the press is saying Pang Da may have to take a $60 million dollar loss. That really seems harsh. I am no bankruptcy lawyer (even in the US) but I can’t believe Pang Da who comes in as a white knight trying to save the company will have to take a bath for its efforts. What a horrible precedent. If that is the case, there will never be any white… Read more »
Henrik B.
Member
5 years 6 days ago
On a personal note, my 2011 9-5 which my wife wrecked several weeks ago…. Yesterday we were told that it could be 3 to 5 weeks before we get a rear door and air bags. When you can’t get new cars fixed in a reasonable time, it is a brand killer. If this car can’t get fixed soon, it may be my last Saab. There is a time limit on how long an insurance company will pay for a loaner car and we are almost up. Soon I will be having to pay for both a loaner car and my… Read more »
Nate 9-3
Member
5 years 6 days ago

David,

That does sound like a hassle. I bet Henrik is right about the SAAB dealer. More importantly, I hope that your wife is OK.

Baracuda
Member
5 years 6 days ago

Tell your dealer about the emergency hotline for parts. You will get what you need mostly within 48 hours in europe, us may take a little longer. There are nearly all spare parts for the 9-5 available for cars with accidents.
Got a bumper, hood and some other parts that are not available through the normal parts system within 24 hours.

Henrik B.
Member
5 years 6 days ago

Yes, I know of at least one swedish site, which sells Saab-parts, that has 9-5 airbags in stock!

Cheers!

Baracuda
Member
5 years 6 days ago

It’s from saab direct where we get our emergency parts.

Henrik B.
Member
5 years 6 days ago

I got that. It was only to illustrate, that they are out there. 🙂

Cheers!

v4ever
Guest
5 years 6 days ago

Hang on, I thought Pangda were supposed to be cash rich? Whats this about “paying off loans & strengthing cash flow”? 594 million dollars is not chicken feed either.

ivo 71
Member
5 years 6 days ago
Not in business, are you? Old rule: if you can help it, never ever put your own capital into ventures with a certain degree of risk. Unless you have so much cash floating around that you just don’t know what to do with it or if you are a venture capitalist by trade. Pang Da is in none of both positions, I believe. So it’s a very prudent action on their part to strengthen their financial scope when they foresee the need to invest serious amounts of money for mid- to long-term yield. The rejuvenation of Saab is, of course,… Read more »
Nate 9-3
Member
5 years 6 days ago

OPM – Other People’s Money

That is how business is done now.

davidgmills
Member
5 years 5 days ago

Thanks guys. My dealer has volunteered to help out if need be. But I will have him check the emergency parts line. I was told today that the doors may be getting here soon. But no good news yet on the airbags. What I was wondering though is whether the airbags on the 9-5 are the same as the Buick LaCrosse. I have people checking because they would be easy to get.

davidgmills
Member
5 years 5 days ago

Oh, and my wife is fine as is the other person my wife pulled out in front of and didn’t see. My wife’s fault unfortunately. But the car clearly demonstrated its safe-worthiness.

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