Saab Automobile Receives Funding Pledge From U.S. Spyker Buyer
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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