Guy Lofalks golden deal…..

Seams like Guy Lofalk has cashed in a smaller fortune.
Di has the article:
Google Translate

Guy Lofalk looks like a clear winner in Saab’s reconstruction. The lawyer has already received 11 million in fees to try to get the submerged car manufacturer on an even keel. The newspaper Dagens Industri.

Lofalk Law Firm turnover in 2010 of just over 13 million in the six employees, with a profit of 1 million, writes Di.
According to information provided to the newspaper asked Lofalk almost 11 million, EUR 1.2 million, to address the reconstruction mission – in advance. Thus, almost the previous year’s turnover on a board.

He must also have been a clause to the effect that the firm will receive up to 7 million extra for the reconstruction succeed.

The reconstruction in 2009 was also the lucrative for Lofalk. At the six-month process, the Agency received almost 41 million.

However, there is a risk that Guy Lofalk forced to pay back some of their work. Saab itself, or one of the creditors, may seek review in district court whether the fee is reasonable.

According to Di considering Saab’s CEO and chairman Victor Muller just that.

scand
Member
4 years 10 months ago

Saab knew his terms and fees before he started. If they thought it excessive, no doubt they could have found a different law firm.

They wanted him be cause of his success at legally getting sek 100’s of millions in write downs of debt during the last reconstruction.

What’s different this time? Last time they had by comparison, considerable cash in the bank. Even he can’t do anything if there is no cash.

Khrisdk
Member
4 years 10 months ago

I don’t think this is a saab statement.
It is a DI.se story, nothing else
Saab may or may not find that GL has not delivered the work he was paid for.
That is a legel atter that the courts will have to decide if it becomes actual

Also please note that some creditors could oppose to the payments to GL,

Generally I just think it is the idea of someone earning that amount of money that triggers this story
Just like the story of VM’s earnings

Tripod
Member
4 years 10 months ago

Well since they didn’t aim for “write downs of debt”, that could not have been the most important factor. However, he knew the company better than some other; then I know nothing (well there has been something mentioned) about whom suggested him, and the discussions.

Even he can’t do anything if there is no cash.

Of course he can’t. But there was an outrage about VM’s remuneration, compare that to GL’s fees. True, they could have picked someone else; but it would be nice if people put things into perspective

BoeBoe
Member
4 years 10 months ago

+1

Saab chose Guy Lofalk and they knew what his demands were. They could have chosen somebody else but they didn’t.

I know that you want to bash Guy Lofalk. Good luck!

moose
Member
4 years 10 months ago

“He must also have been a clause to the effect that the firm will receive up to 7 million extra for the reconstruction succeed”

… and still he recommended that the reconstruction would be terminated. In my books that is one further evidence pointing to the same direction to which so many other news have been pointing to – Victor’s reconstruction plan was just not feasible to begin with.

Tripod
Member
4 years 10 months ago

A bit about wording; the documentation presented to the court is one thing; the reconstruction plan is something created by the administrator after having examined the companies financial situation etc. in cooperation with the companies.
That said, in this case there wasn’t enough funding for the whole reconstruction period, as you know; thus there mustn’t necessarily be something wrong with the work they had planned to carry out during the reconstruction. There are several parties in this, and you know that.

katar1na
Member
4 years 10 months ago

How ’bout this one:

The government provides 100 million for Facebook.
The reason: the company builds data centers in the catalog.
– I as Minister for Enterprise and see this as an aid for regional development, says Annie Loof (C).

till72
Member
4 years 10 months ago

Read that, too. Funny in a sick sense…

Marque
Member
4 years 10 months ago

Exactly how many windmills would 100 million make?

900SEB
Member
4 years 10 months ago

Well, 11 millions sounds like a lot. But TRUED forgot to point out that Lofalk got SEK 11 millions as fee in advance; which is around EUR 1,7 million. I know, it’s still a lot of money, but fees are settled taking into consideration the IMPORTANCE of the task.

And as many of you have pointed out, Swan knew about the fees before they choose Lofalk.

rune
Member
4 years 10 months ago

Well, if you hire a plumber to fix your sink, I am sure he will be expensive too, so you won’t be too happy in case the sink is still leaking afterwards, right?

It has been said that Lofalk did not even sit down with NSC for a chat. Instead he went on a wild goose chase in China. NDRC will not let anyone other than Youngman touch this deal, and GM will not allow Saab to become 100% Chinese.

So yeah, it seems fair to negotiate the bill.

900SEB
Member
4 years 10 months ago
Well, Saab agreed to pay Lofalk SEK 11M whether the ongoing reconstruction was successful or not. Plus another SEK 7 M if he completed his task successfully. Those are facts. And yes, you can always negotiate after signing an agreement, but your position will be weakened, for sure. And left to the goodwill of the other party. Lofalk asked the reconstruction to be stopped due to lack of founds. I believe while some people can take that as “jumping off the ship” too early, some others can say “Lofalk had his hands tied without money, he couldn’t do anything else”.… Read more »
rune
Member
4 years 10 months ago

Just read what Lofalk said himself. If he met with NSC, he would have said as much.

Saab seemed happy with the results first time around. This time they seem less happy with his work. Given that they paid a very decent fee, you should not be surprised if they afterwards evaluate ‘bang for buck’ to see if they got what they paid for. Quite reasonable, IMO.

Put differently, if Lofalk did nothing but sit on his hands all that time, would it still be reasonable to pay him the fee they agreed on?

scand
Member
4 years 10 months ago
An alternative analogy is this… Saab is more like a supertanker on the rocks with a hole in it. There is no guarantee that the ship can get towed off, let alone float, but the owner of the ship wants to try, otherwise the local authorities are gonna burn it. Lofalk is the “salvage company” They agree on a fee to try the salvage, and the salvor starts the process. Upon inspection of the ship, the salvor realizes that the hole is so big, that even if he drags it off the rocks, it will sink anyway. He goes off… Read more »
rune
Member
4 years 10 months ago
scand, I understand you are enthusiastically following the situation, but there really is no need to write four paragraphs to say that “Lofalk thought that NSC did not have the necessary cash nor connections to pull this off”. However, as I tried telling you: GM will not allow a Chinese to own 100% of Saab. They would have sold Saab to the Chinese more than two years ago if they had any interest in that direction. That is a no go, unless Youngman / Pang Da are willing to gamble it all on the Phoenix. And NDRC will not allow… Read more »
ivo 71
Member
4 years 10 months ago

Well, for one thing that its owner/operator races sportscars and, when doing that, occupies a place in the same pits building as do Muller and Antonov with their racing teams. Maybe they even share a glass of champagne over dinner now and then…

😉

Ivo

scand
Member
4 years 10 months ago
Actually i was trying to point out that the plumber analogy wasn’t really correct in this situation: you cant hire an administrator, and expect all will be hunky dory, through and post reconstruction, just because you wrote a sizable check at the beginning. Re NSC. Based on the visible info in the public domain, not a hell of a lot, but comparing NSC’s available info with , say, Cerberus, Permira, or Blackstone – PE co’s that do have the wherewithal to bite off a project of this size – then its fair to say most reasonable observers would be somewhat… Read more »
rune
Member
4 years 10 months ago
Huh? Are we using the same language? You are 100% right about the check-writing part. But I am trying to say that when you hire a handy man, you do expect him to follow the book as it were. Lofalk was clearly wasting time with Geely (a ‘no go’ for more than one reason). To me it looks like the reconstruction troubles started after his visit with Geely. I know I would hesitate transferring anything to a business partner that has almost-hidden discussions with a competitor. But this is mostly between Saab and Lofalk. They will have to decide if… Read more »
scand
Member
4 years 10 months ago
@rune. I certainly don’t know enough about what he may or may not have done in China , but the whole premise of the reconstruction was that the interim financing for the Pheonix IP happened in order to finance the reconstruction period until the PD/YM deal closed. I dont know if the wheels fell off that deal because of GL and Geely, or not, but when the interim money didnt arrive, then Saab was out of cash and GL’s hands, from a legal aspect, were tied. Im not sure what other decision he could have made at that point. Thats… Read more »
Khrisdk
Member
4 years 10 months ago

According to DI.se, all of the six people in the company is probably working hard on it.
Which may just again lead me to mistrust DI.se on their ability to cover things in a complete way

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