Saab Automobile AB Applies For European Investment Bank Loan, Not GM

Posted on 17. Feb, 2009 by in 2000-2009

The jury was out for a while as to why General Motors did not apply for the other loan to the European Investment Bank for $600 Million, now we know why. SVT reports and TTELA in my conversation today, I have now learned that the Swedish Industry Minister, Maud Olofsson just indicated that Saab Automobile AB themselves, actually just applied for the loan to the European Investment Bank for the $600 Million! Take a look at the video above for all you that are familiar with the Swedish language.

This is really good news, because now it appears that the game of chicken may be coming to an end because the Swedish Government as I mentioned earlier did not want to fork up their share of the other $400 million until GM came through with the EIB loan for $600. Now that the Saab Automobile have applied for it directly, perhaps the Swedish Government, once the plan is released later tonight, will come through with their financial support as well knowing that it won’t go to Detroit afterall?

It looks like Saab Automobile AB has the chance of actually acquiring the total of $1 Billion dollars in loans afterall by all accounts at this time. I am getting optimistic, now all we wait for are the details in that business plan to be submitted at 6pm, EST to the U.S. Treasury.

In addition to the video above, I do have a translated copy of what transpired that helps confirm this breaking news:

GM: Saab to be reconstructed

Saab will set the payments already in a few days, experiencing Report. The reason is that Saab owners GM is preparing a reorganization of the Saab. A decision by GM’s board may already tonight.

The reorganization means that an adviser called in to help the company back on its feet and protect the Saab from the claimant up to nine months. A notification to the district court may be submitted already in a few days.

-In particular, you can then review the activities, says the administrator Rolf Åbjörnsson to SVT.

-You can also cut off around 75 percent of the debts, continues Åbjörnsson.

-A rescue loan, as promised by the government, is extremely significant because it could finance the reconstruction, says the administrator Rolf Åbjörnsson.

Industry Minister Maud Olofsson said that politicians should not take the responsibility that must be demanded from the owner GM.

-It should be clear that GM is trying to leave Saab, said Industry Minister Maud Olofsson to SVT’s News on Tuesday evening.

This is underlined by the Saab itself, not GM, submitted a loan application for support from the European Investment Bank.

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