Victor Muller is seeking a €600 million loan from a Bank in China to allow Saab to survive and circumvent GM’s objection to Chinese ownership.
We’re not sure if this is ‘Plan B’ or whether we’re way beyond that now. But the latest ‘Save Saab’ pitch from Victor Muller is to acquire a €600 million loan from a bank in China to save Saab.
This news comes on the back of court administrator Guy Lofalk’s decision to request the ending of Saab’s court protection in Sweden. Lofalk says there is no way forward for Saab and there is no longer any point in delaying the inevitable bankruptcy of the Swedish car maker, which hasn’t produced a car since April.
Lofalk has said that the stance of GM – who hold preference shares in Saab – is implacable, and they will simply not countenance any shareholding over 20 per cent by any Chinese party to protect their technology (which underpins Saab’s cars) and their own sales in China.
Lofalk says that GM are simply rebutting any scenario that exceeds a 20 per cent stake in Saab from China, and are not prepared to offer any other alternative scenarios.
The news that Muller is now trying to put in place a €600 million loan from the unnamed Chinese Bank does, on the face of it, seem untenable. By any standards Saab isn’t good for €600 million, so we wonder how the deal could possibly be structured, and how the loan could pass muster with the Chinese authorities?
Is the loan to be guaranteed by Pang Da or Youngman? And if so, what happens if Saab defaults? Wouldn’t that mean Saab becoming a Chinese company after the default?
We’ll be amazed if Muller can make this float. Especially has he has a matter of days before the Swedish courts remove Saab’s protection and plunge it in to bankruptcy.
But we love the Dunkirk spirit.