Saab receives the first part of a bridge loan from Zhejiang Youngman Lotus Automobile

Article by Christian A., on October 13, 2011

It’s a beautiful day for Saab as the Swedish firm has just received the first part of a bridge loan from China's Zhejiang Youngman Lotus Automobile. According to Saab, further payments are expected to be made this week and by October 22, but the firm didn’t want to say what was the initial payment. Still, according to a report by Swedish daily Dagens Industri, said the automaker had received about 100 million crowns ($15 million).

Same newspaper said that the money will be used to pay wages at Saab when a government salary insurance scheme runs out. The money received by Saab is part of a 70 million euro ($97 million) loan secured by Youngman, but the manufacturer is also waiting for Chinese authorities to approve the bigger investment by Youngman and China's Pang Da.

According to our sources, Swedish Automobile a.k.a. Saab owner intends to repay this bridge loan with the proceeds of these bigger 245 million euro ($338 million) equity deals. Yesterday, Pang Da chairman Pang Qinghua said that he is confident that the planned investment in Saab will be approved by Chinese authorities.

"I think the NDRC supports companies to head overseas, they come in and we go out. I think the government would be quite supportive on that front. When it comes to Saab, I think if it's in China, the government certainly wouldn't let it collapse." Said Pang Qinghua.

Topics: saab

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