Saab, currently being sold by General Motors, might not get the full SKR4.3bn (US$612m) loan it has requested from the European Investment Bank (EIB), a local paper Dagens Industri said, citing an anonymous source.
The loan is essential if luxury car maker Koenigsegg is to buy Saab but the EIB is doubtful whether some of the group’s projects to develop environmentally friendly technology are within its remit for lending, Reuters reported, citing the paper.
“There are questions about whether a number of development projects fit with the EIB’s rules for lending,” the paper quoted a source as saying.
Koenigsegg, backed by US and Norwegian investors, struck a preliminary acquisition deal earlier this year, but concerns have continued to surface over whether it had the financial muscle to buy and run Saab.
It is talking with the Swedish government to secure state guarantees for the EIB loans.
Dagens Industri said questions had also been raised regarding the value of collateral that would be placed with Sweden’s Debt Office to secure a government guarantee.
“There is a discussion as to whether Saab’s assets shouldn’t be valued at their worth in the event of insolvency rather at market value,” the source said.
“In that case, the collateral would not be enough security for a loan of SKR4.3bn.”
Koenigsegg chief executive and part owner Christian von Koenigsegg told Reuters on Saturday there was good progress in talks to secure the guarantees and the group aimed to finalise Saab’s acquisition by the end of October.
He played down a report that Koenigsegg could pull out of the deal unless there was progress on securing loans by Wednesday.
Earlier this month, Koenigsegg said state-run Beijing Automotive Industry Holdings would take a minority stake as part of its planned purchase, easing funding worries.
Swedish state secretary Joran Hagglund told Reuters yesterday he hoped the EIB would decide on the loan on 21 October or the day after.
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