Even If Saab Sales Go Through, Swedish Automobile May Still Be Forced to Face Liquidation

Swedish Automobile absolutely cannot seem to catch a break, no matter what they try to do. The main brand of Swedish Automobile, Saab, has even received government protection from creditors, looked for some loans and investors, trying to better their situation, but it has been reported that even if they manage to secure the deal with Chinese Automakers, and sell the Griffin marque, they still may end up getting liquidated.

If everything goes according to Swedish Automobile’s plan, Bloomberg reports that their many dealing would result in a raise of 132 million euros, which is translated into 181 million U.S. dollars. That is, if everything goes to plan. That is a big if, and it still would not even outweight the 136.5 million euros, which is translated into 188 million U.S. that Swedish Automobile owes to their creditors. According to reports from Bloomberg, it could mean that Swedish Automobile would be forced to liquidate, even if their plans go through. No matter whether or not they make the sale with Zheijang Youngman, Lotus Automobile, and Pang Da Automobile Trade Co, they could still be facing liquidation.

However, Swedish Automobile may be able to make it through the sales without facing liquidation, but only if they can wrap up their sale of Spyker. Private equity of firm North Street Capital LP has made an agreement to purchase Spyker for 32 million euros, which is translated into 42 million U.S. dollars. That all may sound like a good deal, but given the company’s recent run of luck and fortunes, we would not count on all of those plans coming to fruition for the company. It seems like no matter what they do, they are going to be facing hard times.