The investment firm of racing car enthusiast Alex Mascioli, which bought the luxury sports car business of the Dutch owner of Saab in September, plans to invest $70 million in the cash-strapped car maker as Chinese bridge financing looks uncertain. Hit the jump to read the rest of the story.
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Swedish Automobile, which owns Sweden’s Saab, said today it would accept a $10 million equity investment and a $60 million loan from Mascioli’s North Street Capital LP to fund its ongoing reorganization.
But it wasn’t enough to appease Guy Lofalk, Saab’s administrator, who planned to file an application at a Swedish court to terminate the troubled company’s voluntary reorganization process, Swedish Automobile said.
Saab said that it would contest his application and ask the court to replace him.
The deal comes a day before a state guarantee on wages that kicked in during the company’s reorganization was due to expire, and just before October wages were due to be paid. Swedish Automobile had hoped Chinese money would keep the lights on.
In June, Swedish Automobile signed a non-binding memorandum of understanding for China’s Zhejiang Youngman Lotus Automobile Co to take a 29.9 percent stake and for Pangda Automobile Trade Co. to take 24 percent, for a combined 245 million euros ($338 million).
The Chinese government, however, has yet to give its blessing. Saab has doubts that the bridge funding of Youngman and Pangda, of which partial payment has been received, will be paid in full on Oct. 22, Swedish Automobile said today.
“North Street’s investment was a bit surprising. They are clearly keen to join the party, they spotted an opportunity given Saab’s position,” Theodoor Gilissen analyst Tom Muller said.
