Yesterday we had the government giving a reserved thumbs up to Saab about their EIB loan guarantees.
Today, there’s a little more information about why.
It seems Saab’s business plan has been stress tested by accounting firm KPMG, who have given it a positive report. This news just in from TTELA:
An independent consultant’s report provides Saab’s business plan thumbs up, with some hesitation.
– The plan is deemed reliable, but risky, “says Bengt Wenner Stein, scientific councils of the Economy Ministry.
With such an assessment, Saab takes yet another step to be able to get the coveted loan from European Investment Bank (EIB) with guarantees from the Swedish state.
Koenigsegg Group, which is going to buy Saab, believes that a loan of around four billion kronor a precondition for the deal to go through.
In addition to the report from consultants KPMG has audited the Debt Office Saab collateral and made a credit arrangement in which the State intends to guarantee one hundred percent of the loan. The Government believes that the base is sufficient to start a review of the EU Commission, have now done a ‘notification.
Without the EU Commission’s approval, no money is paid.
Perhaps most critical is the Saab meets the requirements for financial soundness.
– The basic rule is that you must not give support to companies in financial crisis. Only viable businesses may be eligible, “says Bengt Wenner Stein.
Saab has a long series of losses behind them and just last year was the loss of three billion kronor, according to the company’s own data. The question is if Saab can be seen as healthy.
– It all depends on how the EU Commission looks at the business plan. There is a history of the company, but there is also a future, “says Bengt Wenner Stein.
The business plan includes two new car models are rolling out next year, that virtually all production moved back to Trollhättan and that production will be so slim that it can be profitable in the company at 100 000 cars sold.
Bengt Wenner Stein points out that the government has not yet taken a position on Saab loan guarantees. Probably takes place at the Board meeting on 21 October.
EU’s formal acceptance is expected to take longer.
– At least two months, “says Bengt Wenner Stein.
The commission will have the KPMG report as a basis, but can also choose to order a custom report.
Thanks to Borjesson for the heads up.
Y’all don’t mind if I have a night off, do you?