Sweden’s National Debt Office (NDO) says it has discussed the Saab crisis with Chinese distribution company Pang Da following rumours the distributor was to pull out of any planned investment.
Intense speculation in Sweden has centred on Pang Da ending its commitment to Saab – a possibility the automaker strongly rebufffed yesterday (12 October) – with the NDO, which has guaranteed a European Investment Bank (EIB) loan to the stricken automaker also dismissing the rumours.
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“I discussed with Saab – they were negotiating with Saab first of all and they have rectified what was in the [media] article,” NDO project director for Saab Daniel Barr told just-auto from Sweden.
“I believe it [rumour] is totally false, it is some kind of misunderstanding. We have contractual relations with the EIB and it is not dependent on the Chinese contract at all.”
Barr added a creditors meeting was due to take place to discuss Saab’s plight following its entry into bankruptcy protection on 31 October. Saab owes considerable amounts to its many suppliers who have yet to receive outstanding monies.
“In parallel, there is a process going on with China with the National Development and Reform Commission (NDRC) and a couple of others,” said Barr. “We expect the first decisions will be taken at the end of this month and the money if approved, could flow into Saab by mid-November.
However, the starkness of the Swedish automaker’s situation was illustrated by Barr’s comments that Saab had to “pay the bills during reorganisation,” although it revealed today (13 October) a first payment of an eventual EUR70m (US$96m) had been received from Chinese manufacturer Youngman.
Sweden will be liable for the EIB loan running into hundreds of millions of Euros however, should Saab fail.
“The EIB granted the loan and we have taken the credit risk, so if Saab can’t pay, the Swedish government will pay them,” said Barr.
