Deutsche Bank AG (DBK) has agreed to provide Saab Automobile, the Swedish carmaker struggling for survival, a 70 million-euro ($95.5 million) bridge loan after securing collateral from a Chinese carmaker seeking to partner with Saab, two people familiar with the matter said.
Deutsche Bank is prepared to lend Saab the money after Zhejiang Youngman Lotus Automobile offered collateral to back the loan, said the people, who declined to be identified as the talks are private. The deal could still fall apart, they added.
Deutsche Bank, while offering to provide the financing, is not an adviser to Saab. The two companies declined to comment.
Saab, which General Motors Co. (GM) sold last year, first halted production in late March after suppliers stopped delivering parts because they hadn’t been paid. Assembly at the main factory has been quiet since early June. Last month it delayed paying wages for the third consecutive month, prompting unions to try and force the carmaker into bankruptcy in an effort to secure state coverage of the salaries.
A Swedish appeals court said Sept. 19 that it will hear Saab’s request to get protection against creditors, which if granted would prevent bankruptcy and ensure state coverage of wages. The original request for a reorganization of the company was rejected by a lower court earlier this month.
Swedish Automobile NV, the Dutch company that owns Saab, agreed in June to sell a 29.9 percent stake to Youngman for 136 million euros. Pang Da Automobile Trade Co., China’s biggest dealer by market value, offered to pay 109 million euros for a 24 percent stake. Regulators and GM must approve the deals.
Swedish Automobile said on Sept. 12 that it agreed to sell the rights to use its new vehicle platform to Youngman for 70 million euros.
VASCO Says DigiNotar Unit Declared Bankrupt by Dutch Court
VASCO Data Security International Inc. (VDSI) said its Dutch DigiNotar BV unit filed a voluntary bankruptcy petition in the Netherlands yesterday and was declared bankrupt by the Haarlem district court today.
The Dutch government said Sept. 3 it no longer trusts certificates issued by DigiNotar after hackers issued fraudulent certificates.
Penta Files Lawsuit Against A-Tec at Vienna Commercial Court
Penta Investments Ltd. said it filed a lawsuit at the Vienna Commercial Court against A-Tec Industries AG (ATEC) via a subsidiary.
“Penta is convinced that selecting Contor Industries GmbH as an investor for A-Tec is seriously breaching the rules set out in the restructuring plan of A-Tec as approved by the Vienna Commercial Court and thereupon by A-Tec itself,” according to a statement.
“A number of violations prove that the search for and selection of an investor for A-Tec was not conducted in a fair and proper manner,” Penta said in the statement. “Penta thus expects a verdict which will result in refraining A-TEC from breaching the binding rules and procedures of the restructuring plan.”
Babcock & Brown Agrees to Settle Liquidator Suit, IMF Says
Babcock & Brown Ltd., the biggest Australian casualty of the credit crisis that followed the collapse of Lehman Brothers Holdings Inc. (LEHMQ), agreed to settle a suit by the bank’s liquidator.
IMF (Australia) Ltd., which provides funding for lawsuits, said terms of the settlement are confidential and Babcock made no admissions of impropriety. IMF said it expects to receive A$7.5 million ($7.7 million) from the settlement.
Babcock, which had a peak market value of $7.8 billion and owned property, ports and power stations, accumulated A$9.6 billion of debt as of August 2008 and collapsed when banks forced the sale of assets to repay the loans. Shareholders were wiped out in the process.
Deloitte Touche Tohmatsu, the bank’s liquidator, sued in August claiming Babcock & Brown breached the Australian Corporations Act when directors paid out tens of millions of dollars in dividends while the company didn’t have the earnings to back the payouts.
The lawsuit followed a public examination of the company’s former executives and auditors in federal court in Sydney.
Lehman to Settle With HSBC Over 343.4 Million Euros Collateral
Lehman Brothers Holdings Inc. said it was working to settle a dispute with HSBC Holdings Plc (HSBA) over 343.4 million euros ($470 million) of collateral deposited with the bank before Lehman’s 2008 bankruptcy to secure overdrafts or debits.
Pending the outcome of final talks over how much HSBC is owed, the U.K. bank will transfer to a Lehman account 100 million euros out of 162 million remaining in the accounts, Lehman said in a court filing. HSBC returned 70 million euros to Lehman and by agreement used other amounts to offset what it was owed by Lehman, according to the filing.
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