Chinese car distributor Pangda’s lawyer believes that the 245 million euro investment of Saab’s Chinese partners, Youngman and Pangda, may still be sealed this year if Chinese authorities approve it. Saab’s production was halted in April when the company wasn’t able to pay suppliers.
Saab is relying on Chinese authorities to approve the investment by Zhejiang Youngman Lotus Automobile Co and Pangda. Saab, which is owned by Swedish Automobile, predicts that China will give its approval this November.
The automaker is implementing a cost-cutting plan for its survival after the court granted it temporary protection from creditors, says Autonews. Pangda's lawyer Peter Goes at law firm Linklaters said that even with Saab’s problems, Pangda remains enthusiastic about the deal and wants production to resume right away. He added that his client is mainly interested on bringing the cars to China.
Goes added if the approval comes, the investment in Saab could be made fairly quickly as soon as some technical details are accomplished, including revising Saab's articles of association and maybe issuing a prospectus.
He also said that an EGM is needed if shares will be issued to Youngman and Pangda. But Goes said that this is merely a formality and that the deal may be closed before the year ends.