Koenigsegg presents its new Saab financing plan
By Andrew C., 27 Aug, 2010. 0 Comments
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The Swedish government is currently mulling a proposal by the Koenigsegg Group AB relating a new plan to finance its purchase of Saab Automobile. Koenigsegg Group is a consortium of private investors that includes Swedish supercar maker Koenigsegg Automotive AB. State Secretary Joran Hagglund confirmed last Monday that the plan didn't involve any extra loan from the Swedish state aside from the European Investment Bank's guarantees. He refused to provide details of the proposal, saying only that "They have presented us with a plan ... we will look at it from our side and decide how credible it is." He said that he expects the Koenigsegg Group to present more information in the days to come.
The Swedish government continues to be in negotiations with Koenigsegg on a possible guarantee for a loan to Saab from the EIB, funds which are seen as crucial for the Koenigsegg deal to go through as well as for Saab's survival. Last June, Koenigsegg reached a deal to buy Saab from U.S. automaker General Motors Co.
In August, GM and Koenigsegg said they had a deal ready but that questions remained regarding financing. Koenigsegg Chairman Augie Fabela was quoted as saying that the group also needed an additional 3 billion Swedish crowns ($420 million) of financing in addition to the EIB loan. Koenigsegg has told the press that the firm expected to close the deal within about a month; however, GM said it saw the deal closing by the end of the year.
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