GM to fill Saab funding hole: report
TT/Stuart Roberts · 2 Sep 2009, 10:37
Published: 02 Sep 2009 10:37 GMT+02:00
- Reinfeldt fobs off Koenigsegg Saab plea (20 Aug 09)
- Sweden refuses to fill capital hole in Saab deal (19 Aug 09)
- GM confirms Saab sale (18 Aug 09)
The paper’s information reportedly came from a source close to the deal. Koenigsegg Group, which has been pressing the Swedish Government over the last two weeks for top-up funding in order to save the company, has stated that it can now complete the deal without government assistance.
"Koenigsegg Group no longer needs additional financing from the Swedish state due to securing financing with the help of GM and new investors,” said the source.
The new settlement may be presented as soon as next week. Saab requires approximately 11 billion kronor ($1.5 billion) before the company can begin to operate profitably, according to the Koenigsegg Group. Current owner GM has already contributed 2.8 billion kronor ($385 million) in the form of a loan and through paying for production equipment for the new Saab 9-5. The Koenigsegg Group has contributed 720 million kronor.
The company also hopes to secure a loan from the European Investment Bank of around 5 billion kronor. In order to secure that loan the company will require a guarantee from the Swedish Government.