Pang Da plans to raise funds

While checking the news about Saab today I ran into a Reuters article from last week. It states that Pang Da plans to raise up to $594 million through a bond issue. The money shall be used to pay off loans and strengthen the cash flow. Of course the issue has to be approved by the respective authorities.

Sure the money we’re talking about here is not directly to be used for the partnership with Saab. But I would dare to say that this is to some degree a move to prepare for the planned investments.

Letters of Support From Pang Da and Youngman

As part of Saab’s appeal today, Pang Da and Youngman have both submitted letters to the court explaining their belief that the deal will go through. They back it up with tables showing the process, and what levels of that process are complete. Read the letters and see those charts after the break.

Read moreLetters of Support From Pang Da and Youngman

SvD: New hope (interview with a Pang Da executive)

Photo: Roger Larch, ttela
A report from SvD is currently making the rounds in Swedish media. New hope of Chinese money.

Last week we received the approval of the local branch of the NDRC in the city of Hangzhou. This is where Youngman’s headquarter is located.

-Next week on Wednesday we hope to get through it at the provincial level, Zhejiang Province.

Read moreSvD: New hope (interview with a Pang Da executive)

Bridge loan part 3

Yesterday we posted news on a speculative rumour about the two Chinese partners of Saab (Pang Da and Youngman) willing to guarantee a bridge loan for Saab, in order to allow Saab to restart production.

Now the plot seems to thicken. According to ShanghaiDaily.com, Mr. Pang Qinghua, chairman of Pang Da, sees no more bankruptcy danger for Saab.

Pang Qinghua, chairman of Pang Da, yesterday told Shanghai Daily that they have not submitted the application to the National Development and Reform Commission, China’s top economic planning body. He did not give further details.

But he said Saab was not in danger of an imminent bankruptcy as its chief executive officer [Mr. Muller] was in China yesterday to coordinate rescue efforts.

This is still a non-confirmed rumour, but more and more fingers point in the same direction.

Thanks to SaabLog-In for the tip.

Reports indicate Saab will build cars in Tianjin, China *UPDATE: Youngman May Make New Investment*

According to China Car Times, Saab will set up shop with partner Youngman in Tianjin, a city near Beijing. It is also the site of Great Wall Motor’s new plant, serves as a major automotive import hub, and is home to many major Chinese suppliers.

CCT mentions that they’ve heard reports that Saab sent a team of engineers to Youngman and found that their existing production lines (which a commenter mentions in the same article are elsewhere in the Guizhou to Shangdong provinces) can easily handle the additional 150,000 vehicles a year when they’re brought online. They say that the plant would be operational in 2 years at the earliest, and that they would need to import cars in the meantime. I’m sure the workers in Trollhattan would be more than happy to ramp up production to cover the difference if Pang Da is placing orders for tens of thousands of Saabs.


Read moreReports indicate Saab will build cars in Tianjin, China *UPDATE: Youngman May Make New Investment*

Chinese getting serious about Saab

Updating the sales figures for June and reading the last press release from Saab is like being in a pitfall for days and hearing the leader coming to you. You know you are still in the pit but you will come out soon.
And while the rope leader keeps falling, yes it is a deep pit; I would like to share my thoughts on this last press release.

Read moreChinese getting serious about Saab

Pang Da Says No Change in Plans *UPDATED*

This is the news from Bloomberg this morning, who reached Wang Yin, board secretary of Pang Da.

“There’s no change to our previous plan,” he told Bloomberg in a phone interview. “Saab is having temporary financial difficulties and the problem isn’t fundamental.”

Gasgoo, a China based Auto Industry news site published a translation of an interview with Pang Qinghua, CEO of Pang Da, that was printed in Beijing Times. It was published yesterday, so I’m not sure if it was conducted before or after news of the salary payment freeze was available to Mr. Pang. Read it after the break.

UPDATE

According to GP.se which cites Swedish radio news, Youngman and Pang Da are helping to find a way to help Saab with the liquidity crisis. One of the directors of Youngman who is Pang Da CEO Pang’s daughter told them that they are working together with Saab, including Victor Muller. Clearly they want their deal still, and don’t see the problems as fundamental. Considering they’ve worked on their due diligence for quite some time, I’d trust their assessments, not repeat hit pieces from news organizations who have only recently picked up the story.

Eric Geers also told Swedish radio that Victor is working around the clock and that he thinks the property sale looks good.

Read morePang Da Says No Change in Plans *UPDATED*

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