Saab, still teetering on the precipice of bankruptcy as it waits for cash infusions from its Chinese partners, received a new lifeline today from the U.S. equity firm that bought Dutch sports car maker Spyker in late September.
North Street Capital, which is owned by auto enthusiast Alex Mascioli, will make a $10 million equity investment in Saab parent company Swedish Automotive in addition to providing a $60 million loan to support the group’s ongoing reorganization.
The firm payed $45 million to acquire Spyker from Swedish Automotive on September 29.
Earlier this month, Saab received $15 million in bridge funding from Chinese partner company Youngman to cover payroll expenses and basic necessities such as electricity. More bridge funding is expected to arrive on October 22nd, although the Swedish automaker reportedly isn’t sure of the actual dollar amount (or even if the funds will actually materialize).
Saab is still waiting for a combined $338 million investment from Youngman and Pang Da to receive approval from the Chinese government.
Update
Despite North Street Capital’s actions, Saab is facing a new obstacle on the road to recovery after the company’s administrator, Guy Lofalk, expressed his intention to file an application at a Swedish court to terminate the beleaguered automaker’s restructuring process.
A statement from Saab said: “Saab Automobile shall contest this application and request for continuation of the voluntary reorganization process. Simultaneously, Saab Automobile shall apply at the court for replacement of Mr. Lofalk as administrator.”
References
1.’…’ view
