UPDATE: Saab secures $25-million loan to stay afloat

Stakes in the Swedish automaker are being bought by two Chinese companies

June 30, 2011   by The Canadian Press

STOCKHOLM—Saab-owner Swedish Automobile NV says it has secured a $25 million bridge loan from Gemini Investment Fund Ltd. to keep the troubled auto-maker afloat until it has settled its other financing agreements.

The loan from Gemini has a maturity of six months and an interest rate of 10 per cent per year.

It expects to redeem the loan at any time without a penalty once the funding from its Chinese partners Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. has been confirmed.

Pang Da has agreed to buy a 24 per cent stake in Swedish Automobile and Youngman wants a 29.9 per cent holding, but their investments are awaiting approvals from Chinese authorities.

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