Saab funding from China likely delayed. Gets loan from North Street Capital

Saab gets funds from North Street Capital

Saab has revealed it doubts the funding from China will arrive on time and has taken a loan from Spyker buyers North Street capital.

Last week we had Saab and their Chinese ‘backers’ getting in a bit of a muddle over funding. Which is what we’ve come to expect.

Saab were adamant that the quote attributed to the Pangda Chairman that the Saab deal was no longer valid was a ‘misunderstanding’.

And Saab were at pains to point out that they’d actually received the first installment of the bridging money from Pang Da and Youngman, and they reassured the Swedish Courts – under whose protection they are now attempting to reorganise their finances – that the rest of the money would arrive by 22nd October.

That statement was enough to stop the court from pulling the plug on Saab and letting the wolves in to feast. But it appears it may have been a little disingenuous of Saab to make such a statement, as they’ve now turned that statement on its head by revealing today that:

“…it has doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on 22 October 2011.”

This news from Saab is prefaced with the revelation that Saab has managed to tap North Street Capital up for a loan and a tranche of shares to fund their ‘reorganisation’. Interesting. Especially as it’s North Street Capital who recently signed a deal to buy Spyker from under the noses of CPP.

This latest bit of Houdini funding acquired by Victor Muller takes the form of:

Subscription to 2,386,635 ordinary shares in the capital of Swan at a price of USD 4.19 per share for the purpose of funding the working capital of Swan, Saab Automobile and Saab Great Britain Ltd. The shares to be issued will be paid in full by Friday October 21, 2011.
Procurement of a loan to Saab Automobile in the amount of USD 60 million to be collateralized by a first lien on certain assets of Saab Automobile as well as a second lien on the collateral as pledged to NDO. This loan is subject to further documentation. The object of the parties is to finalize documentation no later than Monday October 24, 2011 with subsequent funding within two days thereof.

We’re not sure if this agreement has been seen and approved by the Swedish Courts, the Swedish Debt Office and the EIB, so it wouldn’t surprise us to see it being blocked once the news filters out.

And the beat goes on, and on, and on….