Report: Despite expiring deadline, Saab talks with Chinese investors continue

Filed under: China, Europe, GM, Saab, Earnings/Financials

Time is running out on the Memorandum Of Understanding between Saab parent Swedish Automobile and the automaker's two Chinese suitors. The MOU technically runs out today, though Automotive News reports that the three companies will continue talks even outside of a formal setting.

Under the proposed agreement, Pang Da and Youngman will buy Saab for around $142 million. The two Chinese companies then plan to invest more than $678 million Saab to help get the company back on track to profitability. That sounds like the company's best hope yet of surviving into the future. Unfortunately, former Saab owner General Motors has said that it is reluctant to allow the deal to proceed as-written because of technology sharing concerns, leaving Swedish Automobile officials to try to work out an amended agreement. Additionally, the Chinese government must also sign off on the deal, though they have allowed

Saab, meanwhile, says that all parties involved continue to work toward a workable solution to the tangle, but the company has just a week left to come up with a proposal to pay its creditors. The company has been under creditor protection while it works to restructure itself, but that protection dries up on November 22 and there's no indication that an extension would be handed out by the courts.

Despite expiring deadline, Saab talks with Chinese investors continue originally appeared on Autoblog on Tue, 15 Nov 2011 16:31:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2011/11/15/despite-expiring-deadline-saab-talks-with-chinese-investors-con/

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