Saab Automobile and parent company Swedish Automobile NV said they will receive funding from North Street Capital LP to help continue the reorganization of the cash-strapped Swedish carmaker.
North Street Capital will lend $60 million to Saab, subject to further documentation, Swedish Automobile said today in a statement. The Greenwich, Connecticut-based private equity firm will also buy 2.39 million new Swedish Automobile shares at $4.19 per share.
“Immediate availability of funding is necessary to continue the reorganization process of Saab Automobile,” Zeewolde, Netherlands-based Swedish Automobile said in the release.
Saab, which has produced few cars since it first halted production in March because of a lack of money, staved off bankruptcy after a Swedish court on Sept. 21 granted the carmaker’s request for protection from creditors. A Swedish district court will meet Oct. 31 to decide whether the reorganization can continue.
North Street Capital on Sept. 29 agreed to buy Swedish Automobile’s Spyker sports-car unit for 32 million euros ($44 million).
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