The last few weeks have been incredibly trying for anyone with a soft spot for Saab. Tensions are at an all time high, and considering what a rollercoaster these last few months have been, I’d advise everyone to take a trip to their cardiologists once a plan is released. That plan is just about ready for it’s moment in the spotlight.
Almost three weeks ago, Saab held their creditors meeting in Vänersborg, Sweden. Only days before, Swedish Automobile (Swan) negotiated for the complete sale of Saab Automobile to the Chinese consortium of Youngman and Pang Da. What seemed at the time like a savior for the company to tired suppliers, dealers, and the Saab community unraveled within days once GM lodged their unwillingness to license the technology that underpins current Saab models, in addition to ceasing 9-4X production.
While all of this has unfolded, North Street Capital (NSC) was working behind the scenes to purchase Spyker from Swan. At times they’ve been prepared to offer a more substantial influx of cash through bridge loans to ensure Saab’s creditors be paid, though these deals were put aside by Swan to focus on a Chinese deal. North Street is aware of speculation regarding their involvement in the sale of Saab. I spoke with Alex Mascioli, Managing Partner at North Street, who wanted to clarify their position in the current situation.
As we continue to report, there is a constant shuffling of deals going on behind the scenes. Unfortunately, there’s still no resolution. As such, Swan must prepare contingencies for the worst.
From Bloomberg BusinessWeek:
Swedish Automobile NV, the Dutch owner of Saab Automobile, may liquidate even if it succeeds in selling the former General Motors Co. brand, as the proceeds may not be enough to pay off creditors.
Swedish Automobile, which has tentative agreements to dispose of Saab as well as its Spyker sports-car business, will consider “all of its options,” including a voluntary liquidation should the deals go through, the Zeewolde, Netherlands-based company said today in a statement.
The transactions would raise 132 million euros ($181 million) and would be insufficient to cover the company’s 136.5 million euros in debt, said Swedish Automobile, also known as Swan. A lack of approvals and final agreements on the deals raises questions about “the future of Swan and any settlement with stakeholders,” the company said.
Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces that it issued a subscription notice for 3 million shares under the current EUR 150 million equity facility between Swan and GEM Global Yield Fund Limited. The exact number of shares to be issued and the price thereof will depend on the pricing period which commences today.
In light of recent developments, North Street Capital, LP will not subscribe for 2.3 million shares in Swan and revoked its commitment to provide a loan of USD 60 million to Saab Automobile.
It appears that despite their MOU with SWAN’s lapse in June, CPP still wants Spyker. I’m not sure what is going on behind the scenes here and I really don’t want to speculate, but it’s always nice to have both sides of the story presented. While this is first and foremost a Saab site, I’ve developed an affinity for Spyker in its own right, and considering this deal has an impact on SWAN’s debt situation, it directly affects Saab’s turnaround.
Read CPP’s press release after the break.
This is hot off the presses and I can’t really comment much about it, but it appears that the Spyker Cars arm of Swedish Autombile has been sold to US private equity group North Street. You’ll recall the deal to sell the car company to CPP/Atnonov fell apart a few months ago.
According to this report, the reconstruction of Saab will continue on. Clearly this should ease the liquidity of SWAN to some extent, which is welcome news. Whether or not Spyker will rejoin Saab down the road is certainly in question. Read the article from the Financial Times (subscription only) after the break.
Thanks to Mihow for the tip!