Saab parent Swedish Automobile has been scrambling to complete a rescue deal for the ailing automaker over the last several months, but all attempts have so far failed. Saab is now in need of an immediate cash infusion to survive and is turning to Chinese partner Youngman for help.
Saab shareholder General Motors is committed to blocking any sale of the company to a Chinese automaker, so Saab is taking a new direction. Rather than selling all or part of the company to Youngman, Saab is asking Youngman for a $803 million loan.
"We're working on another structure where we don't need to get the consensus from General Motors, because they don't want to give it,"¯ Saab CEO Victor Muller said. "The transaction involves loans and no shares."¯
Although the new plan would allow Saab to avoid getting GM's approval, the company doesn't have much time to put it into action. Saab's court-appointed administrator has requested that the company's creditor protection be removed, which would ultimately lead to the automaker's bankruptcy. Saab's creditor protection could be lifted as early as next week.
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