Beleaguered Saab has said that it has secured a US$70m investment from US private equity group North Street Capital.

The cash injection consists of a share purchase valued at around US$10m and a loan of US$60m.

Saab said that the share purchase is for the subscription to 2,386,635 ordinary shares in the capital of Swan at a price of US$ 4.19 per share for the purpose of funding the working capital of Swan, Saab Automobile and Saab Great Britain Ltd. The shares to be issued will be paid in full by Friday October 21, 2011.

The administration of the loan is expected to be finalised by October 24.

A company statement said: "It has doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on 22 October 2011. Immediate availability of funding is necessary to continue the reorganization process of Saab Automobile."

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