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Pang Da's Shares Tumble On Saab's Bankruptcy Move
By Jin Jing |
September 9, 2011, Friday
|
Print Edition
Print Edition
Shares of China's Pang Da Automobile Trade Co fell yesterday as the cash-starved Swedish carmaker Saab, which the Chinese company plans to invest in, filed for bankruptcy protection on Wednesday.
"Investors are dumping Pang Da's shares mainly on concerns that the company may have problems getting vehicles off its assembly line if the production suspension lasts longer," said Wang Liusheng, analyst with Guodu Securities.
Shares of Pang Da fell 2 percent to 27.93 yuan (US$4.38) yesterday, dropping for nine consecutive trading days.
On Tuesday, Pang Da and Zhejiang Youngman Lotus Automobile Co jointly submitted an application to the Development and Reform Committee in Hangzhou, where Youngman is based, about their investment in Saab, according to Pang Da's statement to the Shanghai Stock Exchange yesterday.
The application would be forwarded to the National Development and Reform Commission for final approval.
Saab, plagued by funding woes that have halted production and was late in payments, will have an initial three months to voluntary reorganize itself if the bankruptcy plan is approved by a Swedish court, a statement said. Saab is trying to stay alive until it gets funding from Chinese investors.
The company said the creditor protection requires costs to be cut and also serves to secure short-term stability while attracting additional funding, its statement said.
In June, Pang Da and Youngman struck a 245 million-euro (US$352 million) deal with Saab's parent Spyker Cars, which has since changed its name to Swedish Automobile, to buy Saab and set up plants and sales units in China.
"Investors are dumping Pang Da's shares mainly on concerns that the company may have problems getting vehicles off its assembly line if the production suspension lasts longer," said Wang Liusheng, analyst with Guodu Securities.
Shares of Pang Da fell 2 percent to 27.93 yuan (US$4.38) yesterday, dropping for nine consecutive trading days.
On Tuesday, Pang Da and Zhejiang Youngman Lotus Automobile Co jointly submitted an application to the Development and Reform Committee in Hangzhou, where Youngman is based, about their investment in Saab, according to Pang Da's statement to the Shanghai Stock Exchange yesterday.
The application would be forwarded to the National Development and Reform Commission for final approval.
Saab, plagued by funding woes that have halted production and was late in payments, will have an initial three months to voluntary reorganize itself if the bankruptcy plan is approved by a Swedish court, a statement said. Saab is trying to stay alive until it gets funding from Chinese investors.
The company said the creditor protection requires costs to be cut and also serves to secure short-term stability while attracting additional funding, its statement said.
In June, Pang Da and Youngman struck a 245 million-euro (US$352 million) deal with Saab's parent Spyker Cars, which has since changed its name to Swedish Automobile, to buy Saab and set up plants and sales units in China.
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