Spyker completes Saab payment

Article by Christian Andrei, on August 26, 2010

Instead of external debt, internal funding was used by Spyker Cars to pay General Motors the final $24 million purchase price for Sweden's Saab, dissipating any worries on how this bill would be paid.

Spyker, a Dutch carmaker that has yet to make a profit, took over the larger Saab from GM earlier this year. Spyker is currently doing what it can to revive the brand but many were concerned with the upcoming final installment of the purchase price due on July 15.

Spyker said that the payment was made without raising its external debt or issuing new shares. Spyker clarified that the internal funding became available after the acquisition of Saab Great Britain Limited by Spyker on May 31. Spyker shares were up 0.43% at 2.311 euros at 0713 GMT, in line with a higher Amsterdam market.

According to Spyker Cars spokesman Mike Stainton, the company used cash from Saab Great Britain to pay the final installment to GM. Stainton added that Saab Great Britain, a wholly own subsidiary of Spyker Cars, has given an inter company loan to Spyker.

Last February, Spyker stated that it had yet to secure financing for the $24 million payment, sparing apprehensions about the carmaker's capacity to fund the final part of the deal.

Spyker Cars explained that it intended to fund the payment mainly through senior debt and that it had pledged assets to GM as security for the final payment.

Topics: spyker, saab

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