Almost every other day, we get a little email from Swedish Automobile (Swan) in our inbox giving us an update about Saab’s survival. Yesterday, the company announced that it has terminated its memorandum of understanding with China’s Pang Da and Youngman – effective immediately.
“Swan took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB (‘Saab Automobile’) while in reorganization under Swedish law,” the company said in a a statement.
But the relationship between the Swedish and Chinese companies isn’t over just yet. Swan said that Pang Da and Youngman have presented an offer of buying 100 percent of Saab, which Swan says is totally unacceptable.
“However, discussions between the parties are ongoing,” the company said.
– By: Omar Rana