Apparently Pang Da and YOungman has failed to cough up the interim funding to keep Saab afloat and this has cause the Swedish carmaker to terminate the Subscription Agreement they entered into in July with the two Chinese car companies.
In the meantime Pang Da and Youngman has offered to buy 100 per cent of the company but Saab finds this unacceptable, but it seems there is still room for maneuver as the parties are still in discussion.
Press Release after the jump
PRESS RELEASE
SWEDISH AUTOMOBILE N.V. TERMINATES SUBSCRIPTION AGREEMENT WITH PANG DA AND YOUNGMAN
Zeewolde, The Netherlands, 23 October 2011 - Today, Swedish Automobile NV ('Swan') announced that it has given notice of termination with immediate effect of the Subscription Agreement of July, 2011 entered into by Swan, Pang Da and Youngman.
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.??Pang Da and Youngman have presented Swan on October 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile which are unacceptable to Swan. However, discussions between the parties are ongoing.
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