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.