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.

20 thoughts on “Guy Lofalks golden deal…..”

  1. 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.

    • 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

    • 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

    • +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!

    • “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.

      • 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.

  2. 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).

  3. 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.

    • 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.

      • 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”.

        As for the rest of your reply, you wrote:
        “It has been said that Lofalk…” Do you have any sources? Because anybody could’ve said that.
        “Instead he went on a wild goose chase…” That’s your view on the events, not actual facts.

        • 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?

      • 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 to China in search of a bigger pump(s), and gets yes we have one, no we don’t, you need govt approval for us to lend it to you, you cant have mine, you can have his/ we want the whole ship if we bail it out / lets have another meeting. The captain, understandably, just wants his ship saved, and doesn’t want to have to give it away, during the salvage.

        Then, a guy from America, spotting the ship in trouble, swans up in his luxury yacht and offers to tow the supertanker off, and bail it out with his 12 volt pump. The Salvor is sceptical, natch, and doesn’t think he has a hope in hell, so doesn’t give him the time of day.

        Meanwhile , back on the supertanker – the crew have run out of food, and the authorities are standing by with a match, as they want this hulk off their coastline one way or another.

        • 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 another Chinese company to bid for Saab as long as Youngman are still interested. They have ‘dibs’.

          Maybe Lofalk thought he could change that, but even I could have told him that it would have been better to check that seemingly small yacht if he had a bigger pump in the back.

          What exactly is it you know about NSC?

          • 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

          • 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 puzzled.

            Would be delighted to be proven wrong.

          • 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 they want their money back or not. It has no direct bearing on the ongoing discussions in Stockholm.

            Still… It is amusing to see how some Swedish media outlets react when VM receives 10 Mill SEK for a year’s worth of hard work, whereas Lofalk’s 10 Mill salary for a month is hardly worth mentioning at all?

  4. @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 where it differs from last time – they never ran out of cash.

    On the salary/comparison. Its GL’s company that billed his fee, not just for him. There are many others from his company working on the case, im sure.

    • 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

Comments are closed.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close