Saab was forced to stop production last month after some suppliers that had not been paid stopped delivery of parts. Well, it now seems like things are getting better for the Spyker Cars owned brand. Saab announced this morning that it plans to restart production within a week after Spyker secured a 30 million euro ($44.7 million) short-term loan to help ease its cash crunch.
Spyker said it will be borrowing the money from Gemini Investment Fund in a convertible loan agreement with a 6-month maturity. The interest rate of the loan is 7 percent a year and the conversion price is 4.88 euros per share.
“In addition to the receipt of EUR 30 million from Gemini, Saab Automobile will make a drawdown request to the EIB for an amount of EUR 29.1 million,” Saab said in a statement. “As a result of the convertible loan and the EIB draw down – which is expected next week – Saab Automobile secured an amount of EUR 59.1 million. With the receipt of these funds, Saab Automobile secured the liquidity that is required to restart production.”
“I would like to apologize to our dedicated employees, suppliers, dealers and customers for the disruptions of the past weeks,” Victor Muller, CEO of Spyker and Chairman of Saab Automobile said. “We will do everything in our power to restore the confidence in our company as soon as practically possible.”
– By: Omar Rana