Although Swedish Automobile, Saab owner, announced yesterday that it terminated the investment deal with Pang Da and Youngman, today the Chinese companies said that their equity agreement was still valid. Say what? Apparently, the Chinese companies said that they will honor their equity investment obligations.
Moreover, Pang Da said it had never signed any bridge financing pact with Saab's owner, while Youngman said that it already paid an $11 million bridge loan to Saab in line with an earlier agreement.
"The company has been exploring various options favorable to Saab during its restructuring process. But, before any new agreement is reached between the parties, we think the previous pact remains legally binding," Pang Da said on Tuesday. For those who don’t know, Pang Da and Youngman agreed to purchase a 53.9 percent stake in Swedish Automobile for a combined 245 million euros ($340 million).
According to Swedish Automobile, the Chinese companies failed to confirm their commitments. Youngman promised 70 million euros in bridge financing, but only a part of these money were received. "Just as we have indicated to Swedish Auto and Saab many a time, we are willing to continue helping Saab (and to) provide short-term and mid-to-long term funds through other means," said Youngman.