SAAB automobiles have stopped its production in the last two weeks as the automakers are struggling for the capital that is required to operate and also pay the suppliers. It is said that once again the approval is at the mercy of GM for the carmakers who are Swedish to survive.
Saab needs cash for its working and the current owner of Spyker cars have come up with a deal that is elaborate along with an investor to help out in the plan. The European Investment Bank has provided the plan with a conditional approval but the most important approval from former owner of SAAB, General Motors and also the acceptance from other provisions required by the European Investment Bank have gone missing.
The story goes like GM has redeemable preference shares in SAAB, even as it was sold it to the Spyker Cars. But before the plans could make a progress, the GM’s approval serves as a key to the proposed sale and also the plans to raise cash for Saab.
For also those spiced up story lovers, there seems to be a dramatic twist with the investor planning to buy entire Saab out and leash them back to the Spyker. The investor in the plot is a Vladimir Antonov who is a Russian financier, suspected to have ties with the Russian ‘bad actors’. So now the effects are reflected at the European national bank as they do not show an open willingness to get in the line of business with the investor. The string of conditions have been further more tightened as, Saab has to repay the loan with in a period of 90 days along with the approval for a partial sale of the properties of Saab. The bank also requires a formal approval from the former owner of Saab Automobile, GM, the Swedish government and the Swedish National Debt Office. The resolution seems to be far ahead and nowhere in the near future.
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