Saab shareholder comes to rescue

// Posted in Saab

Saab enters new era

The Gemini Investment Fund, already a Saab shareholder, has agreed to loan an extra €25 million to ensure Saab can remain solvent in the short term. This follows an earlier €30m loan from Gemini last month. The money has already been used to pay workers their wages for the month of June.

Saab’s production line is currently idle, although it is hoped they will resume manufacture in the next two weeks. However, it is likely ongoing negotiations with suppliers will need to be finalised before that can happen.

Further assisting Saab’s immediate fortunes is the order of 582 cars from an unnamed Chinese company who has agreed to pay the €13m invoice up front. Also, a €28m conditional property sale has been brokered.

You have to ask, though, will we be talking about Saab as an ongoing concern in 2021? Saab hasn’t made a profit for over 20 years and Swedish Automobile, nee Spyker, has never been in the black.

[Source: Reuters]