Saab to get 30 million euro cash injection

2nd May 2011, Comments 0 comments

Saab will be able restart production within a week after its owner, Dutch car maker Spyker, said Monday it had reached a deal on a 30 million euro cash injection for the troubled Swedish car manufacturer.

"Spyker entered into a 30 million euro ($44.6 million) convertible loan agreement with Gemini Investment Fund Limited with a six month maturity," the company said in a press release.

The loan comes with an interest rate of seven percent per annum and a conversion price of 4.88 euros per share.

In addition to the loan from Gemini, Saab will request a loan drawdown of 29.1 million euro from the European Investment Bank (EIB) -- which the company said was expected next week, securing a total of 59.1 million euros.

"With the receipt of these funds, Saab automobile secured the liquidity that is required to restart production," the company said.

Bought from General Motors in January 2010, the embattled Swedish car manufacturer is searching for funding -- including the sale of real estate -- to kickstart production which was interrupted in the beginning of April due to a dispute over unpaid bills.

© 2011 AFP

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