Chinese firms still committed to Saab deal
The agreement was first announced in June and would give Saab a €245m investment in return for a majority stake.
However in a statement, Swan said that it had decided to terminate the deal ‘in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated’.
It added that the firms had failed to meet explicit and binding agreements related to providing bridge funding to Saab while in reorganisation under Swedish law.
In response, according to a report in Reuters, Pang Da said in a stock exchange filing that it had never signed any bridge financing pact with Swan but intends to honour its equity investment obligations, including seeking Chinese government approval.
‘The company has been exploring various options favourable to Saab during its restructuring process. But, before any new agreement is reached between the parties, we think the previous pact remains legally binding,’ Pang Da said.
Meanwhile Youngman said that it remained committed to its obligations and regretted that Swan was looking to end the deal.
The firm commented: ‘Just as we have indicated to Swedish Auto and Saab many a time, we are willing to continue helping Saab [and to] provide short-term and mid-to-long term funds through other means. It also said that it is open to further discussions among the parties involved.
Last week, the firm’s court-appointed administrator, Guy Lofalk, said that the he didn’t think Saab would receive the funds from the firms and recommended that the reorganisation process be halted.For more of the latest industry news, click here.