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Agreement between Saab and the Chinese seem to stand despite all the misunderstanding
Tuesday, 25 October 2011
Saab's two Chinese partners, Youngman and Pang Da, said that the agreement they signed with Saab Automobile in July still apply according to the latest report carried on various Swedish media networks.

This information came from a stock exchange newsletter release in China, reports Reuters on Tuesday. The same agreement was terminated by Saab and the company's CEO Victor Muller on Sunday. He did it in disappointment that Youngman, according to Muller, has not delivered the money that they promised during the Saab reorganization, the so-called bridge financing.

There are no representatives in person who would love to comment on the Reuters reports. But Youngman regret that the Saab owner, Swedish Automobile explained that the agreement is broken. Youngman added that the company for its part is prepared to meet its obligations.

"We are willing to help Saab to raise capital in the short and medium term," the company is reported to have said.
The company claims to be open to further discussions in relations to equity issue with the involvement of other parties.


Youngman said they have already paid Saab eleven million U.S. dollars of bridge financing that total would be 70 million dollars, according to previous agreements between the parties. The company claims to also be ready to support Saab with more loans.

Saab owners Swedish Automobiles shares rose by over 10 percent in trading on the Amsterdam Stock Exchange after Tuesday's statement from the Chinese stakeholders.

Pang Da, for its part says that they never signed any contracts for bridge financing to Saab. But it adds that the other parts of the agreement from July remain. This applies to the company's commitment to work with Youngman and invest a total of €245 million to become part owner of Saab.

Together, Pang Da and Youngman get 53.9 percent of the shares in the Swedish Automobile. In addition, Pang Da announces that it still wants to go all the way and look for the Chinese government's approval to a deal.

Pang Da says they want to explore other ways to support Saab in the reorganization process.
“But before any new agreement is reached between the parties, we mean that the previous contract is still binding,” says Pang Da.

The Chinese dealer which is one of the biggest on the Chinese market, also notes that it has already paid Saab the €45 million in a separate transaction in which nearly 2,000 cars were to be delivered. They say that they had also tried to secure the amount borrowed to Saab in case the company go bankrupt.
By Scancomark.se Team

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