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Swedish Automobile in final talks for Saab
October 27, 2011 / 4:01 PM / in 6 years

Swedish Automobile in final talks for Saab

STOCKHOLM (Reuters) - Swedish Automobile SWAN.AS said on Thursday it was in “intense final negotiations with relevant investors” to secure vital financing for carmaker Saab, one day before a court could pull the plug on its bankruptcy protection.

A logo of Swedish car manufacturer Saab is pictured in front of a Saab dealer in Vienna, June 24, 2011. REUTERS/Heinz-Peter Bader

The administrator in charge of Saab’s bankruptcy protection asked a Swedish court last week to end the administration process as there was far from enough money to keep the reorganization running.

Swedish Automobile has been negotiating with Chinese investors Pang Da Automobile Trade Co (601258.SS) and Zhejiang Youngman Lotus Automobile Co about longer-term investments and a short-term cash lifeline.

“The final result of these negotiations, which can come more or less anytime, are conclusive for Saab’s ability to take a stance on the question that the court has asked Saab to comment on,” Saab said in a mail to the court.

“Thus, Saab cannot, until the result is known, make any remarks,” it said.

Swedish Automobile said late on Sunday it was cancelling a provisional agreement, signed in June, in which Pang Da and Youngman would each take a stake in the car firm for a combined 245 million euros ($340 million), because they had failed to confirm their commitments.

Pang Da and Youngman later said the deal was still valid.

The Chinese companies have also come up with an alternative for a 100 percent buyout of the carmaker, an offer Swedish Automobile rejected.

The court said on Thursday, after Saab missed a deadline to react to the administrator’s request, that it would still consider any remarks from Saab up until it makes its decision.

Reporting by Anna Ringstrom and Mia Shanley

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