October 12, 2011 / 9:32 PM / 8 years ago

Saab receives loan money from Youngman -paper

* $15 mln payment part of $97 mln bridge loan

* China’s Zhejiang Youngman secured loan to aid Saab

STOCKHOLM, Oct 12 (Reuters) - Crisis-hit car maker Saab SWAN.AS has received about 100 million crowns ($15 million), part of a bridge loan secured by China’s Zhejiang Youngman Lotus Automobile that is key to the Swedish firm’s short-term survival, daily Dagens Industri reported on Wednesday.

The money is part of a 70 million euro ($97 million) loan secured by Youngman that is intended to see Saab through a period of creditor protection until Chinese authorities OK a bigger investment by Youngman and China’s Pangda (601258.SS).

Quoting unnamed sources, the paper said the money will be used to pay wages at Saab when a government salary insurance scheme runs out. The salary insurance plan kicked in when the company got creditor protection in late September

It was not clear whether Saab would get further money from Youngman in the short term or whether it must wait until Chinese authorities approve the planned 245 million euro ($338 million) investment Youngman and Pangda have agreed to make in Saab.

The paper said a decision by China’s NDRC that Saab had expected on Thursday is likely to be delayed. However, the paper quoted a source with insight into the process as saying approvals should be wrapped up by mid-November.

Earlier on Wednesday, Pangda chairman Pang Qinghua said he was “confident” the firm’s planned investment in Saab would go through. [ID:nL3E7LC161]

In recent days, Swedish media have speculated that Saab’s court-appointed administrator was close to ending Saab’s period of credit protection, paving the way for the court to declare the firm bankrupt. [ID:nL5E7LB1DA] ($1 = 6.611 Swedish Crowns) ($1 = 0.725 Euros) (Reporting by Simon Johnson; Editing by Gary Hill)

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