Saab reorganization news thread

[nordwulf]

It seems like the Chinese are getting cold feet. Who knows what's going on..

http://www.nytimes.com/2011/10/21/bu...rest.html?_r=1

PARIS — Saab Automobile’s last hopes for avoiding collapse appeared to be fading Thursday, with Chinese investors getting cold feet and the court-appointed administrator recommending that its reorganization process be halted.

“The situation is rather complicated,” Victor Muller, the Dutch entrepreneur who bought Saab from General Motors in 2010, said in a telephone interview. “We’ve seen the Chinese investors making U-turns in the last few days. That is very concerning because just last week they had confirmed their interest.”

Mr. Muller’s admission came after Swedish Automobile, the holding company he set up to group Saab and his Spyker sports-car business, said it had learned that Guy Lofalk, the court-appointed administrator, “will apply for termination of the voluntary reorganization of Saab” and two subsidiaries.

Saab’s main factory, in Trollhattan, Sweden, last turned out a car more than six months ago after unpaid suppliers had stopped extending credit to the automaker, leaving Mr. Muller to fight an increasingly desperate battle to restart production before the company is declared bankrupt.

Saab won court protection from creditors last month to reorganize, and Mr. Lofalk was charged with helping it to come up with a convincing business plan, even as the company held out for €245 million, or $335 million, in promised investments from two Chinese companies, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade.

“We definitely will not accept” Mr. Lofalk’s bid to end the reorganization, Mr. Muller said, adding that he would seek to have a new administrator appointed.

Mr. Lofalk “is completely focused on an ownership change,” Mr. Muller said. “He wants to force Swedish Automobile to sell Saab.”

He said he did not want to “speculate” as to why Mr. Lofalk might seek such a change.

There has been growing uncertainty as to whether the Chinese investments would be forthcoming, with Reuters last week citing Pang Da’s chairman, Pang Qinghua, as saying the investment plan was no longer valid because of the reorganization. The companies later said Mr. Pang’s statement had been the result of “a misunderstanding.”

Mr. Muller said he was confident that Saab would present its reorganization plan to the court as scheduled on Oct. 31.

“No way it’s over,” Mr. Muller said. “It’s a process that we’ll fight in court.”

Swedish Automobile had said earlier Thursday that it had obtained funding from North Street Capital, an American private-equity firm, saying it needed funds immediately to continue the reorganization. Under that deal, North Street was to lend Saab $60 million and buy 2.39 million new shares in Swedish Automobile at $4.19 per share.

[nordwulf]

I like Mascioli's idea better than Chinese ownership. And much, much better than full ownership by Pangda and Youngman.

Car enthusiast Mascioli says determined to save Saab

Oct 21 (Reuters) - Race car aficionado Alex Mascioli, whose U.S. firm is investing $70 million in the Dutch owner of Swedish auto maker Saab, said on Friday he was willing to use his resources to save the firm from a possible bankruptcy.

Saab owner Swedish Automobile has accepted a $10 million equity investment and a $60 million loan from Mascioli's North Street Capital LP, a U.S. private equity and hedge fund manager, to fund its ongoing reorganisation.

"I expect the deal to go ahead. I'm willing to do what I can with my resources for Saab," North Street Managing Partner Mascioli, told Reuters in a telephone interview.

Saab is an undervalued asset from which Mascioli expects to make a profit, he said, adding that North Street had the capacity to take over Saab should it wish to do.

Chinese auto firms Zhejiang Youngman Lotus Automobile Co and Pangda Automobile Trade Co have agreed to invest 245 million euros in Saab. Youngman is also behind a bridge loan to Saab that has been partly paid out.

But on Friday Swedish Automobile Chief Executive Victor Muller said the two firms had made a full-blown takeover offer for Saab, casting doubt on their appetite to press ahead with the original deal.

"It's Victor's call. He has put a lot of effort into trying to save this company. At the moment there is a deal with the Chinese," Mascioli said.

Car enthusiast Mascioli says determined to save Saab | Reuters

[nordwulf]

Interview in English as posted by Steven on Inside Saab.

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[nordwulf]

[FONT=arial]Translated from Swedish

2011-10-21 at 14:50
Letter from Victor Muller to Saab employees

Best employees

The events of recent days calls for a clarification from our side, because I imagine that you are concerned and certainly quite puzzled. I am very well aware of the concern that the new situation helps, especially when it comes to your job and your future salary. Believe me when I say that these things have top priority when we deal with the situation.

So what happened? After winning the appeal to go into the reconstruction of a month ago we started working on preparations for the creditors' meeting on 31 October. However, it was fairly soon clear that some individuals in the reconstruction process was working with a different agenda, which led to undue media attention. After a visit by the administrator, Guy Lofalk, in China spread news that Geely submitted a bid for Saab, with our partner Youngman basically been eliminated. The situation came under control relatively quickly when Geely withdrew and the Young Man and Pang Das financial commitment to the Saab was renewed last week.

Since reorganization requires some funding and it was uncertain whether Youngman and Pang Da would finance the Saab as last week agreed plan, decided Swans management approach North Street Capital, a US-based private financing company that was willing to provide $ 70 million in funding. We are of the opinion that this sum more than sufficient to continue the reconstruction, pending a response from Youngman and Pang Da. Lofalk, however, was of a different opinion and decided, despite the funding commitment from North Street Capital, the - the district court in Vanersborg - yesterday apply to join the reconstruction. We will contest this application to terminate reorganization and ask to replace Lofalk.

Court will decide by the end of next week and we will keep you informed of developments, such as the Swan secures additional funding.

Yours sincerely,

Victor Muller
CEO & Chairman, Saab Automobile AB[/FONT]

[nordwulf]

[FONT=Arial][FONT=inherit][FONT=inherit]TROLLHÄTTAN

[FONT=inherit][FONT=inherit]Muller believes that Lofalk gone behind the backs of the Saab management and made up with Chinese intresenter. [/FONT][FONT=inherit]But now it turns Guy Lofalk back.[/FONT][/FONT]
[FONT=inherit][FONT=inherit]- It's konspriationsteorier is hopeless to comment, saying he said. [/FONT][/FONT][FONT=inherit][FONT=inherit][FONT=inherit][Updated 12:06][/FONT][/FONT][/FONT]

Late last night spoke TTELA with Victor Muller, who then expressed his disappointment at how Guy Lofalk acted during his time as administrator. [/FONT][FONT=inherit]Muller says that Lofalk himself went to China and soon after it emerged that Youngaman and Pang Da was interested in buying the entire Saab.
[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]But Guy Lofalk says that he has not had its own agenda.[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]- I is not part of the game on the ownership level. [/FONT][FONT=inherit]I am appointed by the court to reorganize Saab. [/FONT][FONT=inherit]I does not have Saab's shares, says Guy Lofalk said.
[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]Were invited to China[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]He claims that he has Saab's management informed of everything he did and that the trip to China was initiated by the Pang Da and Youngman with a meeting with the Chinese super-department of NDRC.
[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]- Muller was an instigator of the meeting. [/FONT][FONT=inherit]I said that this is the last chance and he said - go, tell Lofalk.[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]Guy Lofalk points out that he was unaware of the Chinese companies' plans to buy one hundred percent.[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]- Facts do not change in order to shoot the messenger, says Guy Lofalk.
[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]Do not[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]Lofalk is also critical of the new settlement that Saab hopes there racing driver Alex Masciolis company North Street Capital will ensure that Saab receives nearly 70 million through a rights issue, and a loan of nearly 400 million.[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]It is money which, according to Guy Lofalk assessment was enough to get the Saab through reconstruction. [/FONT][FONT=inherit]But he does not give much for plans.
[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]- There is no money we have seen. [/FONT][FONT=inherit]This is a legal process that must be stopped if there are no prerequisites. [/FONT][FONT=inherit]Liquidity was over, he says to Di.
[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]No agreements[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]According to Guy Lofalk are no contracts, no information on North Street Capital. [/FONT][FONT=inherit]What exists is a document with six or seven rows of them to buy shares and lend money to Saab against collateral.[/FONT][/FONT][/FONT]
[FONT=Arial][FONT=inherit][FONT=inherit]- But what the collateral is not clear, said Lofalk to Di.

[/FONT][/FONT][/FONT]http://ttela.se/ekonomi/saab/1.1402855-lofalk-slar-tillbaka

[nordwulf]

TROLLHÄTTAN
Saab administrator Guy Lofalk have not yet ordered the payment of money from the state pay security for October. This may mean that Saab salaries are delayed.

The government wage guarantee that took over the payroll in August and September is also the first 21 days of October. But for that money to be disbursed from the State Provincial Bank, a decision from the administrator Guy Lofalk. Such a thing had not reached the County Board on Friday afternoon. If it means that wages can not be paid is uncertain.
- It takes about a week from decision to payment of salary money, says Magnus Bergman, director of the county administrative board's finance unit.

Has ambition

For the Saab Employee wages in August and September, the government wage guarantee paid out 296 million including taxes and fees.

- Our ambition is to pay wages in October on ordinary days, says Gunilla Gustavs at Saab's information department.

According to a press release from the Swedish Automobile is $ 70 million, approximately SEK 450 million, from U.S. private equity firm North Street Capital on its way into Saab's coffers. But when and if the money can be used for salary payments is unclear.

Are prepared

Saab's personnel director Johan Design Branch says of Saab's internal site that is yesterday carried out a payroll run to be prepared to pay the wages next week. But there is a risk of delays.

- We have been informed that the administrator has contacted the supervisor to get their position on the issue of the decision on pay security section to be covered by the provincial government. Guaranteed wage shall, if so, cover a larger portion of their salary for October, says Johan Design Branch.

TTELA have searched Guy Lofalk for a comment but without success

Lofalk kan ha försenat lönerna - Saab - www.ttela.se

[nordwulf]

TROLLHÄTTAN
Enforcement Authority is now preparing to proceed with foreclosures by Saab for the district court decides to stop reconstruction.

More than 160 creditors require automaker in more than 230 million.

After a meeting has Enforcement concluded that the authority must make an additional review of Saab's assets.

According to Hans Ryberg, Head of Enforcement Division of Enforcement in Uddevalla, it has been noted that there are sufficient assets to GM's corporate and mortgage pledgee that the Debt Office. But the bailiff to proceed to get the money to creditors is not yet clear.

Major challenge

- Will the attachment on a large scale, it is about production, inventory, inventory, and more, says Ryberg said.

Foreclosures started on 17 August and Enforcement targeted then set out to get some money from Saab's Swedish accounts. About ten million could be measured before Saab went into the reconstruction and foreclosures stopped. Enforcement officer could also get their hands on the Saab Museum's car just before the Court of Appeal's decision on the reorganization.

Many people want to buy

Hans Ryberg believes that it is possible to get a lot of cars.

- It called the people almost every day and asked to purchase the cars, he said to TT.

Kronofogden laddar för nya utmätningar - Saab - www.ttela.se

[nordwulf]

Trollhättan, Sweden: Today, Swedish Automobile N.V. (Swan) announced that it has given notice of termination with immediate effect of the Subscription Agreement of July, 2011 entered into by Swan, Pang Da and Youngman.

Swan took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB (Saab Automobile) while in reorganization under Swedish law.

Pang Da and Youngman have presented Swan on October 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile which are unacceptable to Swan. However, discussions between the parties are ongoing.

[Hirsch]

Damn.....

[nordwulf]

Nothing good can come from 100% Chinese ownership... I hate to say it but I rather see Saab go into bankruptcy than be under complete Chinese control. The deal was good for the money and the possibility of sales in the Asian market. Not because they have very noble intentions for Saab.