Posted by: saabnuts | April 15, 2011

Saab News April 15, 2011

Saab 9-5 winter king

Saab 9-5 winter king

From Saabs United:

Mrs. Maud Olofsson spoke about Saab at 17:30 CEST

“UPDATE

Go-ahead to borrow money

Maud Olofsson came with information on Saab’s future at a press briefing at Rosenbad. The bottom line is that the government gives the go-ahead for Saab to borrow money. However, it has not yet taken a position in the question of ownership.

From ttela.se”

Update from Saabs United:

Saab Secures Financing
by Jeff on April 15, 2011

At the 17:30 press conference in Rosenbad, Enterprise and Energy Minister Maud Olofsson announced that they have given Saab the go-ahead to borrow money from a European bank. The new owner of the Saab plant will be Saab Automobile AB Properties, which she confirmed is controlled by Vladimir Antonov. In turn, Sweden’s taxpayer exposure decreases since the loan guaranteed by Sweden will also decrease. The Debt Office continues to work on a review of Vladimir Antonov that will allow him to come in as part owner with a share just under 30% of the company. While this isn’t technically a transfer of money yet, Sweden’s freeing up of Saab’s collateral was one of the biggest hurdles in allowing Saab to gain access to sell its facilities and get quick access to capital. As Spyker said in their press statement, there are still issues yet to be resolved but this is the surest sign yet that Saab will be able to pay its debts very soon.

There are three tough conditions for the settlement:

1. The price for the properties must be fair and the company has access to the Saab production facilities.
2. Any questions remaining about Antonov must be resolved. This is to prevent any question of money laundering.
3. The money must flow through a European bank that isn’t connected to Antonov.

Sadly the conditions are all there to satisfy any doubts about Vladimir Antonov, which I’m sure he’s happy to prove are unfounded. Time will heal, and his image will hopefully recover someday. For now, these are the conditions Saab has to live with, and while they may be overly complex, it’s a testament to Saab management to be able to pull another rabbit out of their hats.

The EIB loan facility will decrease to 280 million, of which Saab has already borrowed 217 million. No word yet on if the money must still be used for environmental projects, but by all accounts those conditions remain. According to Daniel Barr from the Swedish National Debt Office, the deal must be approved by the EIB. As you’ll read in Spyker’s press release below, there are still outstanding issues to be ironed out. Saab will be guaranteed a down payment of 30 million (Euro we think), but the facilities will bring in a lot, lot more. This frees up liquidity right away to pay suppliers and get the production line moving while at the same time giving Saab a buffer to work towards securing long-term financing. In other words, they’re not treading water anymore, they at least have a life preserver. Now it’s time to get back on the ship and get back to safer water.

Spyker’s press release:

SPYKER CONFIRMS STATEMENT SWEDISH GOVERNMENT ABOUT RELEASE OF NDO’S SECURITY IN SAAB PROPERTY

Zeewolde, The Netherlands, 15 April 2011 – Spyker Cars N.V. (Spyker) confirms the announcement of the Swedish Government approving the release of the pledge of the Swedish National Debt Office (NDO) in the shares of Saab Automobile Property AB (Saab Property), subject to certain conditions.

Saab Automobile AB continues its discussions with respect to the sale of its property, based on the additional conditions of the Swedish Government. The outcome of the discussions is still not certain and subject to the approval of the European Investment Bank.

For more information and the sources of this information, see DI’s story and TTela’s story (and by all means visit dn.se and vote “Ja” (Saab will make it through the year)

For the latest Saab news check the news category at SaabsUnited.com

and from TheLocal.se:

Sweden approves new Saab financing

Swedish enterprise minister Maud Olofsson announced on Friday the government would allow cash-strapped automaker Saab to borrow money from new sources to continue its operations.

The solution means that Saab has permission to sell its real estate to Russian financier Vladimir Antonov. In exchange, Saab will be able to use the entire loan from the European Investment Bank (EIB).

“In practice, this means a reduction in tax payers’ exposure because the amount of the loan will be reduced,” Olofsson said in a Friday afternoon press conference.

She explained that Sweden’s National Debt Office (Riksgälden) is in the middle of carrying out an investigation of the new owner and that Friday’s decision doesn’t mean it has completed its assessment.

The probe is being conducted at the request of Saab, but is not yet finished.

The Debt Office must first eliminate a number of questions surrounding the new owner, said Olofsson.

But the government has placed three tough conditions in order for the deal to be approved.

The agreement must be signed between Saab and the buyer of its associated property company, Saab Automobile Properties AB, guaranteeing Saab a reasonable payment for company.

Saab must also retain access to the facilities to carry out its production. Finally, payment for the real estate must be carried out through a bank that isn’t controlled by the buyer.

Olofsson explained that the condition that the transaction be carried out through a European bank was meant to ensure the government that the deal involved a “serious buyer”.”

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