China's Youngman and Pang Da Say Saab Deal is Still On

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Earlier this week, Saab announced that it was terminating the deal with Chinese companies Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co., since their bridge loan that would help the Swedish automaker survive in the short term did not materialize in the agreed period.

Yet the two Chinese companies that provided only part of the €70 million (US$ 95.4 million) loan and which recently offered to buy 100% of Saab’s shares, say that the €240 million (US$340 million) July agreement is still on the table.

"The company has been exploring various options favorable to Saab during its restructuring process”, Pang Da said in a statement. “But before any new agreement is reached between the parties, we think the previous pact remains legally binding."

Pang Da has already paid €45 million (US$64.7) for the purchase of 1,930 cars from Saab and stated that, if the company goes bankrupt, it "has made provisions" to recover that amount.

Youngman also issued a statement saying that it has already given Saab a (US$11 million) bridge loan and remains committed to the deal: "Just as we have indicated to Swedish Auto and Saab many a time, we are willing to continue helping Saab and provide short- and mid-to-long term funds through other means."

Because of the uncertainty over the Saab-Pang Da-Youngman deal, the court-appointed administrator who would oversee the carmakers’ creditor protection and restructuring process has asked for it to stop.

The Vanersborg court will rule on the administrator’s proposal on Friday, October 28.

Story References: AutoNews