Bankruptcy

Now the Saab Buyer Bails Out

By mcbride

Hot on the heels of the Saturn buyer pulling out forcing the closure of that brand, GM has announced that  its Swedish car maker, Saab, no longer has a buyer.  Swedish firm Koenigsegg Group AB was set to make the purchase, but now says that timing is a problem.  ??Everybody wanted to make this deal, but the…time aspect were just too difficult,? he said. Koenigsegg had been talking to the Swedish National Debt Office about the government guarantee for the loan it needed to buy the unit. It also had recently announced a tentative deal with Beijing Automotive Industry Holdings to explore export opportunities for Saab to China. The price of the deal had not been disclosed by either party. One published report estimated GM would get less than a $500 million. But Michelle Krebs, senior analyst for industry sales tracker Edmunds.com, said losing the deal could cost GM additional cash to shutdown dealerships and manufacturing facilities in Sweden if it is unable to find another buyer.?

Here is a link to this article: http://money.cnn.com/2009/11/24/news/companies/gm_saab/?postversion=2009112414

 Michael

Full post as published by Texas Lawyer Blog on November 25, 2009 (boomark / email).