UPDATE: Saab secures $25-million loan to stay afloat
Stakes in the Swedish automaker are being bought by two Chinese companies
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.