Saab Secures Funds, Aims To Resume Production
STOCKHOLM (AP) — Spyker Cars NV said Monday it has secured $88 million (euro59.1 million) in short-term funding for Saab and aims to restart production at the troubled automaker's plant within a week.
The company, which bought Saab out of liquidation from General Motors Corp. in January 2010, says it signed a euro30 million convertible loan with investment fund Gemini and will also make a drawdown request to the European Investment Bank for euro29.1 million.
Saab has run out of cash to pay its suppliers and production has been at a standstill since April 6.
Spyker said it will also continue talks to secure midterm and long-term funding for the car brand.
"I would like to apologize to our dedicated employees, suppliers, dealers and customers for the disruptions of the past weeks," Spyker CEO Victor Muller said. "We will do everything in our power to restore the confidence in our company as soon as practically possible."
Shares in Spyker rose 2.9 percent to euro4.34 after the announcement.
The drawdown is part of Saab's continued borrowing from the European bank, which has granted the company a euro400 million loan. So far, Saab has used euro217 million of that, spokesman Eric Geers said.
Geers said the EIB needs to approve the drawdown, but said he sees no reason why it would reject it.
He said Muller is currently in China to seek funding partners among Chinese car manufacturers.
Spyker has previously also put forward plans to raise cash by selling its property to Russian businessman Vladimir Antonov and allow Antonov to become part-owner of Saab.
Last week, the Swedish Debt Office recommended the government allow Antonov to invest up to euro30 million for a 29.9 percent stake in Spyker, while GM said it had reached a "tentative agreement" with Saab to that effect.
The EIB, which also needs to approve the move, has not yet made a decision.
Copyright 2011 The Associated Press.