Sweden repays Saab loan granted by the European Investment Bank

Article by Christian A., on January 29, 2012

Sweden is now the biggest creditor of Saab after the country’s Debt Office paid back a loan granted by the European Investment Bank (EIB) to the bankrupt company. The Debt Office was the guarantor for Saab's original 400 million euro ($526 million) loan from the bank, which is the long-term investment arm of the EU. Saab spent 217 million euros of the loan.

Last Friday, the Debt Office said the debt is slightly lower than 2.2 billion crowns ($325 million). It also said that shares in Saab Automobile Parts and Saab Automobile Tools held as collateral by the Debt Office are worth more than the loan.

With the loan, the EIB and the Swedish government can veto over ownership changes. Debt Office spokeswoman Unni Jerndal said that the payment was triggered by Saab's bankruptcy.

She added that Sweden still prefers to sell the entire company instead of breaking it up in the bankruptcy process. Reuters spoke to sources who said that a bid is being prepared by Chinese group Zhejiang Youngman Lotus which has been participating in negotiations for several months now.

On Jan. 21, Saab's receivers said that they had been in talks with several bidders and would want for the Swedish company to be sold as a whole. No bids have been submitted this week.

Saab had ended production in early 2011 as it had run out of money to pay its employees and suppliers. Dutch firm Swedish Automobile, which owns Saab, couldn’t convince previous owner General Motors Co. to agree to a rescue deal involving a Chinese company. Saab then announced its bankruptcy last December.

Topics: saab

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
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