e24 on the state of the Youngman deal

Yesterday was pretty quiet regarding Saab news. It looks like the press used the day to contact their “people familiar with that matter” because today many come up with stories today. Earlier today I featured a piece from di.se, now there’s a story from e24.se:

Today, Saab’s fate can be decided, according to sources familiar with. To Saab’s reconstruction is to continue the company is dependent on the advance of 640 million that Youngman would have paid up early as 26 September – but not yet paid. Saab has basically run out of money and if the 640 million crowns will not be submitted to administrator Guy Lofalk stop reconstruction today, according to sources familiar with the process.

Careful soundings were made last week with Geely. But now the re-negotiated with Youngman in Stockholm, according to several people familiar with the process.

I’m not sure if today really is the final and crucial date but it’s pretty obvious that a solution to obtain the payment has to be found within days, not weeks.

And there are negotiations under extreme time pressure. Saab needs namely in his reorganization have the money to pay their suppliers on a cash basis and be able to pay salaries to government wage guarantee expires on October 21.

It’s about solving the complicated agreement on Saab’s technology Phoenix, but also to return to the previous spring’s negotiations and solve any old grudges. Victor Muller changed in the late spring track for carmakers Hawtai and the Great Wall after several months have been negotiating with Youngman. The clock is ticking and Saab have some money left in the treasury. Time pressure means that it is probably too late for anyone else to enter the stage.

Well, if Youngman really had been grumpy because Victor negotiated with other parties I think they would not be around anymore. But it may as well mean that Youngman want to be double sure that the deal they are making now is waterproof. And the turn towards Geely was surely not the best move in that respect.

And we also get some statement on the reports that the Swedish state may take over the EIB loan.

Dagens Industri reported on Friday that it would be a plan to solve the loans from the European Investment Bank, EIB, and convert the Debt Office has pledged in the Saab to share – to be sold to a Chinese car manufacturer. Something that Victor Muller strongly disliked and who by all accounts has sown dissension between Lofalk and Muller.

But the former would solve the mortgage limits for shares in order to save Saab denied now by the Debt Office Manager Officer, Daniel Barr.

-No, we have no intention of immediately raising pledges. But if the reconstruction is interrupted and a bankruptcy trustee goes into it can of course be changed.

Are there any thoughts on raising pledges to resolve the EIB loan and help Saab in its reconstruction?

-No, the Office has no such mandate, says Mr Barr.

Now on to the rather encouraging part of the story:

But if Saab receives off advances from Youngman remains the big trial: Youngman and Pang Da must be approved by the Chinese Ministry of super NDRC – otherwise the whole affair. According to Saab’s reorganization plan should be done already on Friday, October 14. According to Sydsvenskan, who interviewed Young’s CEO Rachel Pang on Thursday, visited an evaluation team from the NDRC both Youngman and Pang Da last weekend.

Government officials were satisfied, according to Rachel Pang also said that Youngman now working hard to finalize the deal. The problem, according to her, was about the Saab is not transferred technology.

Youngman and Pang Da must also undergo ownership assessment at the Debt Office. And on Sunday night was a big chunks information from Youngman, who answered questions regarding financial information. The Debt Office has not yet had time to evaluate the material.

So it looks like Youngman sent in the papers that the NDO was asking for and the process in China is continuing. And, most importantly, Youngman still wants to finish the deal. That’s good news. On a personal note I think it is doable to finish the deal in time if everybody involved follows the plan.

Another thing I found today is that BAIC made sure to tell the world that they don’t want to take over Saab. It’s okay BAIC, I’m fine with that.

29 thoughts on “e24 on the state of the Youngman deal”

  1. In large parts pretty much the same as reported earlier in the other post, “Tuesday morning snippets”, apart from the last words.

    • till72,
      e24 works together with SvD, Svenska Dagbladet, so you will see very much the same articles, when it comes to business etc.

      I haven’t compared every word, don’t have the time; but even the last paragraph: “Now on to the rather encouraging part of the story” is the same as your latest addition to the โ€œTuesday morning snippetsโ€ from SvD; apart from your comments of course. ๐Ÿ™‚

      • Just saw that Jeff added it to the snippets post while I was writing my article… ๐Ÿ˜‰ Already thought I was becoming paranoid…

        • Ah. ๐Ÿ™‚ I thought you all were working as one person. ๐Ÿ˜€

          (I guessed it might be something like that, since the quotes from SvD seemed to have been added at a later point, but they were there when I read the post the first time. Sorry.)

  2. I thought the chances were good when the reconstruction started, but by now…So, please correct me if I’m wrong.
    If that money doesn’t come soon (2-3 days), even the reconstruction itself is ruined and we can loose our hopes that SAAB will survive ?

  3. Don’t worry about NDRC, the plan will be approved.
    Because Youngman is family owned, Pang Da is a listed company, private enterprise, both of them are not government owned, so they will be responsible for their own investment risk.

    NDRC recently rejected Sichuan Tengzhong, they want to buy Hummer from GM, because Hummers are fuel consumption monster, does not meet the direction of China’s future energy conservation.

    I think NDRC has no reason to reject the project.

      • just car of Singapore,

        NG 9-5 & 9-4x will sale very well in china if they come with RIGHT price. the chinese like big luxury sedan and suv right now. don’t higher than BMW and keep improve interior to higher level, and change the design of the steering wheel, so cheap, you can easily find same design in a GM mass car,

        2010/08 Audi A6L 9522 A4L 8106 Q5 5223

          • it’s sales number of Audi.

            and net prices are (USD)

            Audi A6L 2.8T FSI 84,298 ~ 99,286 USD
            Audi A6L 2.0T FSI 55,681 ~ 65,124 USD
            Audi A4L 2.0T FSI 48,592 ~ 72,856 USD
            Audi Q5 2.0T FSI 59,571 ~ 89,043 USD

            BMW 520 Li 65,657 USD
            BMW 523LI 70,519~ 76793 USD
            BMW 528 Li 86,361 ~ 98,125 USD
            BMW 535 Li 98,439 ~ 124,162 USD

            SAAB OG 9-5 Aero 2.3TS 86,107 USD
            SAAB OG 9-5 Vector 2.0T 75,128 USD

            SAAB 07′ Aero 2.8TS 82,970 USD
            SAAB 07′ Vector 2.0T SC 71,991 USD
            SAAB 07′ Linear 2.0t 54,739 USD
            SAAB 07′ Vector 2.0T ss 67,286 USD
            SAAB 07′ Vector 2.0T Covetable 99,596 USD

  4. Everything is negociation………One good guy : working night and day, very upset whith the administrator, one bad guy : ready to do anything even to sell the whole thing to Geely………And if the good and the bad were playing the same game……..???to get the deal done with YoungMan – PangDa????????

    • Crisis which, according to the article, has to do with the Chinese partners being annoyed at the Geely visit (which Geely itself stated was out of courtesy alone) and with the agreement to technology sharing being way past its September 26th deadline.

      Can I ask you to please post a google translation of the article? Thanks in advance ๐Ÿ™‚

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