Sweden ready to help Saab, with some conditions

Article by Christian Andrei, on April 15, 2011

Saab has been given a helping hand by Sweden, which had offered conditional backing for an agreement to free up cash. Last year, Spyker saved Saab but it faced a drop in 2010 sales, resulting to a cash-crunch in 2011. Saab was forced to suspend production since two weeks ago as it had failed to make payments to suppliers.

In a news conference, Enterprise Minister Maud Olofsson said that the Debt Office has been allowed to conclude an agreement with Saab.

The government approved a proposal from the Debt Office to let Saab sell real estate, including the production plant, to Russian financier Vladimir Antonov and then lease it back. Initially, this deal will bring 30 million euros to Saab; however, the value of the real estate is actually a lot higher.

Sweden was compelled to agree to the deal since the real estate was held as collateral for a 400 million euro loan from the European Investment Bank (EIB) to Saab, which was guaranteed by the Debt Office.

Olofsson explained that the deal to release the collateral meant that the EIB loan would drop to 280 million euros. She added that in practice, this means that the exposure of taxpayers goes down along with the size of the loan.

The government had set conditions, including that Saab has to get a market price for the property. It also has to get access to the production facilities and to make sure that questions swirling around the buyer, Antonov, would be resolved.

Topics: sweden, saab

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries