Saab Great Britain in administration; Share sale memorandum expires

By Caroline Salls

Pittsburgh, Nov. 30 - Saab holding company Swedish Automobile (Swan) said a memorandum of understanding for a €100 million agreement on the sale of all shares in Saab Automobile and Saab Great Britain Ltd. to Zhejiang Youngman Lotus Automobile Co., Ltd. and Pang Da Automobile Trade Company Ltd. expired on Nov. 25.

Swan said Saab Great Britain filed for administration with the High Court in London on Tuesday.

According to a Swan news release, Saab Great Britain's board believes the administration will give the company protection against creditors until it secures funding needed to continue operations.

Once appointed, an administrator will take on the management powers of Saab Great Britain's directors.

In addition, Swan said it has received a conditional funding commitment from Youngman for the payment of Saab Automobile employee wages and for the continuation of the activities of Saab Great Britain.

However, Swan said the Saab entities had not yet received the funding.

As previously reported, the memorandum of understanding transaction hit a roadblock when General Motors said it would not agree to the continuation of existing technology licenses or the continued supply of 9-4X vehicles to Saab following the proposed ownership change.

Swan and Saab and its administrator are in negotiations with Youngman and Pang Da to explore an alternative transaction and future ownership structures that would allow for the required GM approval, the release said.

Saab is a Trollhattan, Sweden-based car manufacturer.

Swedish Automobile is based in Zeewolde, the Netherlands.

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