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China's Youngman bids anew for Saab: report

17 Apr 2012, 08:09

Published: 17 Apr 2012 08:09 GMT+02:00

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"That's the lowest price that the major pledgees and real estate owners will accept to settle their pledges and their property," a source told DI.

According to the paper, the Chinese firm has also promised to invest an additional 10 billion kronor in order to restart production at Saab's factory in Trollhättan in western Sweden, a facility which has been more or less at a standstill for a year.

India's Mahindra & Mahindra is also reportedly negotiating with bankruptcy administrators in hopes of laying claim to what's left of Saab Automobile, which filed for bankruptcy protection in December 2011 following months of financial problems.

Meanwhile, Pang Da, the Chinese carmaker which for a long time was extremely interested in taking over Saab, has reported that its efforts to revive the cash strapped Swedish brand cost it dearly.

In 2011, Pang Da paid €45 million ($59 million) in advance for cars that Saab was supposed to build.

But the cars were never made, and now Pang Da reports that the payment has hit the company's 2011 earnings, which sunk by 43 percent, according to Automobile News China.

The report comes following a tense hearing in Vänersborg District Court on Monday during which former Saab CEO Victor Muller and Guy Lofalk, the court appointed administrator who had been charged with trying to reorganize Saab to avoid a bankruptcy filing, testified to the accuracy of a recently completed inventory of Saab's debts and assets.

The review revealed that Saab had around 13 billion kronor in debts against 3.6 billion kronor in assets.

During the hearing, Muller criticized Lofalk for the way he handled the reorganization as well for accepting too high a fee for his work.

Muller went on to demand that Lofalk be required to repay part of the €1.2 million he and his staff were paid and that the administrator also be made to pay damages for doing a poor job.

Story continues below…

Lofalk was left stunned by the request.

"I've been seen anything like it," he told the TT news agency.

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Your comments about this article

09:03 April 17, 2012 by RobinHood
So it wasn't only the Swedish taxpayer who lost a fortune on Victor. He took $59 million off Pang Da too. What an inevitable waste of time and money he turned out to be.

It makes me wonder why the Swedish press stood moot and placated, while Victor went through the Rover bankruptcy playbook, play by play? It was obvious to every financial journalist in Sweden where poor Saab was heading, yet not one journalist spoke up for the tax payer, as the assets flew out the door, and the tax payer picked up the bill for months of employees wages. Why not?
15:25 April 17, 2012 by minzi
Yes, why Swedish keeps silent for their sakes. Nothing will be changed if nobody speaks out.
02:25 April 18, 2012 by anthonyx26
The biggest issue was that Muller hired on too many employees shortly after he came on board. Had he instead continued with or even shrunk his workforce at that time, he likely would have bought himself enough time to release critical new products.
22:50 April 22, 2012 by Just_Kidding
The banks do not like Youngman's bid, thats fine, but is there any other bidders with a higher bid? Or do they want the break up and sell the parts? or do they want to start running it as a car company? What are the alternatives to accepting the highest bid?
19:58 April 28, 2012 by tomas R

I think that SAAB automobile must survive! It produces one of the best cars in the world!


tomas (driving SAAB 9000'95, Lithuania)
23:27 May 16, 2012 by cheyjan
The only automobile I've driven since 1978 has been a SAAB. I've owned (5), all which I loved, and one saved my life!! Please figure out how to pull this company out of the problems that they are in, and start manufacturing again. GM is the monster in this whole mess - they've skimmed off all of the intellectual and safety features of this wonderful product, and won't allow any other viable company in the world to buy what's left. I'm in the USA and were just dying over here!!! It's so easy to stand in (4) corners and point fingers at each other, just get this wonderful product and company back operational, and I'll be the first to buy a new SAAB!

From Cheyenne, Wyoming - cheyjan
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