China's Youngman to bid again for Saab: report
03 February 2012
Chinese car manufacturer Zhejiang Youngman Lotus Automobile Co is planning to make a fresh bid to buy bankrupt Swedish Saab Automobile next week, Swedish radio reported yesterday, citing sources.
The report comes a week after Sweden's Daily Industry said that Youngman's top executives are scheduled to go to Gothenburg this week to meet the bankruptcy administrators with a Swedish krona 5-billion ($730 million) offer.
Swedish radio said Youngman's offer was worth several billion Swedish krona, and the Zhejiang province-based carmaker would continue to make cars at Saab's factory in Trollhattan in the southwest of Sweden, according to the new deal.
Saab filed for bankruptcy in December last year after hopes of a life-saving funding from Chinese investors, including Youngman, collapsed due to opposition from Detroit-based carmaker General Motors (GM), which holds a veto on any sale since it continues to own key patents used by Saab.
The district court in Vanersborg, Sweden has appointed two receivers to either sell the company outright or break it up and sell it piecemeal. The proceeds would be used to repay Saab's creditors, which include GM.
Last week, Sweden's Debt Office said it had paid back loans given by the European Investment Bank to Saab, which reduced the number of approvals required for the sale of Saab.