SWEDEN: Saab rejects 100% share proposal from Youngman and Pang Da
Saab says it has turned down an offer from Pang Da and Youngman to purchase 100% of its shares, as it waits for a court decision on whether or not to lift its bankruptcy protection.
The news comes as the Swedish automaker revealed it had also terminated with "immediate effect" its subscription agreement of July, 2011 entered into by Swan, Pang Da and Youngman.
The Swedish automaker insists the latest twist in its grim struggle to survive is as a result of Pang Da and Youngman "failing to confirm their commitment" to the subscription agreement, as well as "explicit and binding" agreements made on 13 October related to providing bridge funding to Saab while in reorganisation.
It appears last week Chinese distributor Pang Da and manufacturer Youngman presented Swan with certain conditional offers for an alternative transaction for the purchase of 100% of Saab shares, although this was deemed "unacceptable."
Despite the undeniably gloomy tone of the news, Saab maintains discussions between the parties are ongoing, although the latest setback comes as the administrator dealing with the manufacturer applied to have its bankruptcy protection lifted. A decision concerning that request is due on 28 October.
Pang Da and Youngman were not immediately available for comment.