Report: Swedish Automobile may be forced to liquidate even if Saab sale goes through

Filed under: Government/Legal, Saab, Earnings/Financials, Spyker

Swedish Automobile just can't seem to catch a break. Its main brand, Saab, has received government protection from creditors, looked for loans and even secured a tentative deal with Chinese automakers, but even if it manages sell the Griffin marque, Swedish Automobile may still end up getting liquidated.

Bloomberg reports that Saab parent Swedish Automobile's many dealings would raise 132 million euros ($181 million U.S.) - if everything goes according to plan. That's a big if, and it still doesn't outweigh the 136.5 million euros ($188M) that Swedish Automobile reportedly owes its creditors. According to Bloomberg, that could mean that the company may liquidate regardless of whether or not the sale to Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade Co. goes through.

According to the report, Swedish Automobile could get through the sale without liquidation if it can wrap up the sale of Spyker. Private equity firm North Street Capital LP has tentatively agreed to purchase Spyker for 32 million euros ($43 million U.S.). That sounds like a done deal, but given the company's recent fortunes, we wouldn't necessarily count on all going according to plan.

Swedish Automobile may be forced to liquidate even if Saab sale goes through originally appeared on Autoblog on Sat, 12 Nov 2011 18:01:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2011/11/12/swedish-automobile-may-be-forced-to-liquidate-even-if-saab-sale/

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