ttela.se featured an article today stating that the money from Youngman for the Phoenix platform is already on the way and will most likely arrive at Saab’s accounts this week.
The even more interesting part of the article is that the Phoenix technology only seems to to be a collateral and is not sold right away – you can read it from the press release, but it’s said much clearer here:
Technology License Agreement, including a separate company established in Holland and who also received the Chinese authorities’ blessing, involves the use of Phoenix technology for next-generation Saab models as collateral to obtain funds from the future owner Youngman.
If Saab can not pay back the most respondents Skr 650 million to get Youngman access to the Phoenix technology, but not the exclusive ownership. But if Youngman is the owner and make an equity investment dissolve this contract up. The Chinese owner may then make a new negotiating for access to the Phoenix technology if you want to use it to their own production.
The translation seems a bit strange. Also the reporting of this in media seems to be confusing. According to ttela phoenix is used as a safety for the loan, that is, if Saab can’t pay back the money Youngman will have access to Phoenix. This is both good and bad. The bad part is that there now could be an interest for Youngman in an aborted reconstruction for Saab that would give them access to Phoenix.
I don’t think Youngman has anyting to win in an aborted reconstruction compared to become a part owner in a living Saab. 🙂
You’re right about a risk for conflicting risks but I don’t think the Phoenix platform is ready enough to be used by an external company like Youngman. They will likely need a lot of support from SAAB to be able to develop anything useful from it.
+1 🙂
Make sure to add the currency whenever you post an amount. It woudn’t be the first time news services report that Saab has sold the platform for $650 or €650 million instead of kronor.
Fixed. Thanks.
sure sounds good.
I trust the good people at SAAB now what they are doing, making sure it’s in the best interest of the company, ie, get that line moving again!
production restart funds?
Probably not. If I remember correctly I Saab owns the suppliers 1400 million Skr. Sourcing the material for the cars currently on order would mean another 400-500 million Skr.
At this point I think that these money are to keep Saab alive until NDRC and all the other Chinese authorities have given their approval of the deal.
I would be surprised if we were to see cars rolling out the factory gates before 2012… Last time if took quite an effort to actually start up the production again and that shouldn’t be underestimated.
Patrik B
Sadly, I suspect that you are right.
You are both right and wrong.
On Oct. 21st there will be a creditors meeting, so even of the creditors say that now they will accept the 10% deal of June, production will not start before the end of November.
Till Oct 21st Saab could get further funding from other partners. (pure speculation)
It’s Oct 31 the meeting with the creditors will be held.
Thank you MK, I was not sure about the date.
there are days when the activity in the stock (SWAN), is dizzifying.
Something funny been going on there?