Sweden’s government says it should recoup its significant financial liability through a tools and parts sale should Saab go bankrupt and the European Investment Bank (EIB) call in its loan.
The Swedish National Debt Office (SNDO) guaranteed a EUR217m (US$286m) loan to Saab from the EIB, but has pledges in the automaker’s parts business and tool manufacture that should cover its major backing.
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However, the SNDO maintains it would first work with any receiver appointed by the Court in a bid to find a buyer for its pledges, rather than selling off the businesses at once in the event of any bankruptcy.
Saab has also just told just-auto it will present its view to the Vanersborg District Court in Sweden next Monday (19 December) in a bid to overturn administrator Guy Lofalk’s application to have its bankruptcy protection status terminated. It was originally slated for this Thursday, but it has now been put back to Monday.
In the event of any bankruptcy, the SNDO says the EIB would likely seek to recover its funds. “The EIB will most probably realise the guarantee which means we need to [give] them EUR217m and then we will be the single largest creditor to Saab,” SNDO project leader for the Saab guarantee Daniel Barr told just-auto from Sweden.
“For that, we have pledges in both the parts business and tools manufacture – we could realise these immediately and try to sell them. Or we could try to co-operate with the receiver that the District Court appoints. We hope we will get our money back, at least the valuation of the collateral.”
The SNDO has carried out its own valuation of the businesses together with one from an independent assessor, which, it maintains, would “cover our exposure.” Should more money be realised than required by the guarantee, this would be used to pay creditors.
“There is a lot of activity going on,” said Barr. “It is a critical point in time for Saab – we keep ourselves informed day by day and hour by hour on the negotiations.”
The Debt Office is not talking to former Saab owner General Motors or the Chinese parties involved in trying to find new finance, but should the ownership structure change, Barr says that “might need our consent.”
The SNDO added it might be present at this week’s Vanersborg hearing following a Saab request today for a Court discussion.
“We thought it would be a written procedure, but we learned today Saab asked for a Court procedure and we might be present,” he said.
