Press Release: Swedish Automobile Received Commitment From North Street Capital On Funding

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces it has received a commitment from North Street Capital, LP (North Street) on the funding of Swan and Saab Automobile AB (Saab Automobile).

The offer consists of the following transactions:

  • Subscription to 2,386,635 ordinary shares in the capital of Swan at a price of USD 4.19 per share for the purpose of funding the working capital of Swan, Saab Automobile and Saab Great Britain Ltd. The shares to be issued will be paid in full by Friday October 21, 2011.
  • Procurement of a loan to Saab Automobile in the amount of USD 60 million to be collateralized by a first lien on certain assets of Saab Automobile as well as a second lien on the collateral as pledged to NDO. This loan is subject to further documentation. The object of the parties is to finalize documentation no later than Monday October 24, 2011 with subsequent funding within two days thereof.

Swan intends to accept this offer because it has doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on 22 October 2011. Immediate availability of funding is necessary to continue the reorganization process of Saab Automobile.

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7 Comments

  1. I should be glad but I don’t know wha to think anymore… After the Hawtai deal have we seen anouncement after anouncement. Please let this be a real deal and start producing those great cars again!

  2. I appreciate that you cannot necessarily comment on Mr Lofalk’s latest action but could you at least give us a clue what on Earth is really going on???

    Talladegan

  3. Are there a pressrelease about Guy Lofalk and that he wants to stop the reorganisation? I can´t see any of that in this release.

    1. Unfortunately yes…

      Published: 16:30 CEST 20-10-2011 /Thomson Reuters /Source: Swedish Automobile N.V. /XAMS: SWAN /ISIN: NL0009816248
      SWEDISH AUTOMOBILE INFORMED BY ADMINISTRATOR OF APPLICATION TO TERMINATE VOLUNTARY REORGANIZATION
      Zeewolde, The Netherlands, 20 October 2011 – Swedish Automobile N.V.
      (Swan) announces it has been informed that the administrator of the
      reorganization, Mr. Guy Lofalk, will apply for termination of the
      voluntary reorganization of Saab Automobile AB (Saab Automobile) and two
      subsidiaries at the Swedish court in Vanersborg.
      In spite of the funding commitment of North Street Capital LP which
      was published earlier today, the administrator who leads the
      reorganization, Mr. Guy Lofalk, will file an application at the Swedish
      court to terminate the reorganization process. Saab Automobile shall
      contest this application and request for continuation of the voluntary
      reorganization process.
      Simultaneously, Saab Automobile shall apply at the court for replacement of Mr. Lofalk as administrator.
      – Ends –

  4. Let’s hope that the North Street Capital funding succeeds, and is enough either on its own, or with some other component, to fund the survival of Saab. Long-term to keep Saab  rooted in Europe will be much more preferable, for to destroy Trollhattan would be an enormous crime.

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