Pang Da sees Saab deal as no longer valid
By Jin Jing |
October 13, 2011, Thursday
|
Print Edition
Print Edition
THE chairman of Pang Da Automobile Trade Co has dashed Saab's hopes of staying alive when he said his company's investment agreement in the firm is no longer valid after the cash-strapped Swedish carmaker filed for bankruptcy protection.
Saab desperately needs the 245 million euros (US$352 million) funding from Pang Da and another Chinese firm, Zhejiang Youngman Lotus, to stay solvent after its application for bankruptcy protection was approved by a Swedish appeals court in mid-September.
"Since the court-administrated restructuring is underway, the original investment agreement is not valid now," Pang Qinghua, chairman of Pang Da, said during an auto conference in Chengdu yesterday.
Saab is also waiting for a bridging loan of 70 million euros that was secured by Youngman Lotus.
Pang said the head of Youngman Lotus, Pang Qingnian, is now responsible for the Saab deal. But he also admitted the two firms have yet to submit the application to the National Development and Reform Commission for approval.
"As far as I know, Pang Qingnian is still working on it and soliciting opinions from experts," Pang said.
The deal with Saab's owner Swedish Automobile, announced in June, includes Youngman taking a 29.9 percent stake in Swedish Auto and Pang Da taking 24 percent as well as manufacturing and sales joint ventures for Saab models in China.
Bloomberg News yesterday said, citing Pang Qinghua, that Pang Da is still keen on Saab and may revise the contract if it involves a new price offer. But Swedish Auto disputed this and insisted the deal is still valid and the contract remains effective, Reuters reported yesterday.
Saab desperately needs the 245 million euros (US$352 million) funding from Pang Da and another Chinese firm, Zhejiang Youngman Lotus, to stay solvent after its application for bankruptcy protection was approved by a Swedish appeals court in mid-September.
"Since the court-administrated restructuring is underway, the original investment agreement is not valid now," Pang Qinghua, chairman of Pang Da, said during an auto conference in Chengdu yesterday.
Saab is also waiting for a bridging loan of 70 million euros that was secured by Youngman Lotus.
Pang said the head of Youngman Lotus, Pang Qingnian, is now responsible for the Saab deal. But he also admitted the two firms have yet to submit the application to the National Development and Reform Commission for approval.
"As far as I know, Pang Qingnian is still working on it and soliciting opinions from experts," Pang said.
The deal with Saab's owner Swedish Automobile, announced in June, includes Youngman taking a 29.9 percent stake in Swedish Auto and Pang Da taking 24 percent as well as manufacturing and sales joint ventures for Saab models in China.
Bloomberg News yesterday said, citing Pang Qinghua, that Pang Da is still keen on Saab and may revise the contract if it involves a new price offer. But Swedish Auto disputed this and insisted the deal is still valid and the contract remains effective, Reuters reported yesterday.
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