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A Saab Enthusiast’s 1962 Saab 96 Barn Find

Posted on 23. Jun, 2010 by .

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Photo Credit: Charles Gould

Saab enthusiast, Charles Gould has recently written a rather detailed account of his “barn find” acquisition of a 1962 Saab 96.

Below is the first chapter of this incredible story.

Another Saab Story- Barn Find 1962 Saab Model 96!

Written by Charles Gould
Photos by Gabriele Isenbrand
Chapter One

I received the Craigslist ad from a friend on Friday night, even before I saw it on the Vintage Saab list, where it had also been posted. The ad said that the 1962 Saab, had been parked in this garage by a little old lady in 1978, and that it had sat there ever since. The ad confessed that the engine was stuck, and that the rest of the car’s condition was unknown, but the photos made it look fairly derelict, with all of the dust and debris which had collected on it for those thirty-three years.

Everyone on the Vintage Saab list had speculated that thirty-three years in a dark, damp New Jersey garage could not have done it well, and that between the salt air, and the obvious mice infestation, it was probably a fairly rusty candidate for restoration.
[…]

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GENERAL MOTORS AND SPYKER CARS REACH AGREEMENT ON SAAB

Posted on 26. Jan, 2010 by .

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News Release
spykerheader

• GM and Spyker Cars announce a binding agreement over the transfer of ownership
of Saab
• Terms are agreed and the deal is expected to close in February
• Saab’s future as an independent company is secured
• Saab will exit the orderly wind-down process
• Spyker shareholders will restructure at closure of the deal
• Swedish Government issues guarantee in favour of EIB

ZEEWOLDE, The Netherlands (26 January, 2010) – General Motors Company and Spyker Cars N.V, today confirmed the details of a binding agreement over the transfer of ownership of Saab Automobile AB of Trollhättan, Sweden. The transaction is expected to close in February and Saab Automobile will exit the orderly wind down process in line with that timetable.

The transaction will be accomplished as follows:

• Spyker acquires from Saab Automobile Investering AB, a subsidiary of General Motors (“GM”), all the issued and outstanding ordinary shares in the capital of Saab Automobile A.B. (“Saab”) for a consideration of USD 74 million (“Purchase Price”).

• The Purchase Price will be paid in two instalments. The first instalment of USD 50 million will be paid on the date of completion of the transaction, expected to take place on or before February 15, 2010 (“the Closing”). The second instalment of USD 24 million will be paid on July 15, 2010.

• The Share Purchase Agreement is subject to the execution of a EUR 400 million loan agreement between Saab and the European Investment Bank (“EIB”), guaranteed by the
Swedish Government. Today, the Swedish government announced approval of this guarantee. The guarantee is subject to approval by the European Commission, which is expected shortly.

• Upon completion of the transaction GM will retain redeemable preference shares of USD 326 million. The preference shares represent less than 1% of the voting rights in the capital of Saab. The mandatory redemption date is 31 December 2016 and Saab has the right to request voluntary redemption at any time prior to this date. The preference shares carry a dividend entitlement of 6% starting from January 2012, increasing to 12% as from July 1, 2014. The dividend over 2012 will be added to the principal, but as from January 1, 2013 the dividend is payable in cash. Should Saab have insufficient distributable reserves to pay the cash dividend it will be added to principal increased with a penalty factor.

• In order to allow Saab to operate on a stand-alone basis outside GM, Saab and GM will enter into a number of ancillary agreements. As part of the transaction, Spyker intends to negotiate the acquisition of all the outstanding shares in Saab Great Britain Limited, the UK distribution, marketing and sales company for Saab from General Motors UK Limited.

• Spyker will issue a corporate guarantee not exceeding USD 10 million for Saab’s obligations to and for the benefit of the financing company GMAC.

• Spyker will as soon as practically possible convene a general meeting of shareholders to approve the transaction. Spyker obtained irrevocable voting undertakings to vote in favour of the transaction representing the voting majority of its current shareholders.

• It is the intention to change the name of Spyker Cars N.V. at that general meeting of shareholders to Saab Spyker Automobiles N.V.

• As back-up financing, Spyker entered into a EUR 150 million Equity Credit Line Facility with GEM Global Yield Fund Limited (“GEM”) for a term of 3 years. According to this facility, Spyker may issue shares to GEM at 90 per cent of the volume weighted average price of the shares over a period of 15 trading days following a draw down notice sent to GEM by Spyker. In relation to the GEM facility, Spyker has issued to GEM share warrants in respect of 1,570,000 ordinary shares at an exercise price of EUR 4 per ordinary share. The warrants have a 5 year
term.

The object of acquisition
• In spite of media reports that certain parts have already been sold off, the object is Saab as a complete entity and going concern with all IP rights, trademarks, facilities and other infrastructures. The sale of pre 2003 Saab 9-3 and current Saab 9-5 technology to BAIC in December 2009 did not result in any part of Saab’s business being divested or devalued. On the contrary, Saab has already started the production of the new generation Saab 9-5 in Trollhättan.

• Both Saab management and Saab GB management prepared an estimated balance sheet as at 31 December 2009 for the purpose of this transaction. These estimated balance sheets are
still subject to final account closing and audit procedures.

• Spyker Cars does not yet have a balance sheet as at 31 December 2009 ready for reporting purposes. As such, it would be premature to show a pro-forma combined balance sheet for
Spyker, Saab and Saab GB as at 31 December 2009.

• Therefore Spyker only disclose an indicative combined balance sheet of Saab and Saab GB as at Closing date based on the estimated balance sheets for both entities as at 31 December
2009, adjusted for the impact of the transaction items as at Closing date.

• It should be noted that the indicative closing balance sheet is based on the latest estimated balance sheets of both entities by Saab and Saab GB management which are subject to final closing and audit procedures and therefore subject to change, and does not reflect any potential fair value or purchase price allocation adjustments. The indicative closing balance sheet should therefore not be considered as the actual closing balance sheet, but only as an indication for the assets and liabilities to be acquired at closing date.

stats

Saab’s and Saab GB’s combined revenue amounted to some EUR 1.0 billion in 2009 (2008:
EUR 1.6 billion). Earnings before interest, taxes and depreciation amounted to EUR 0.4 billion
negative in 2009 (2008: EUR 0.3 billion negative). In 2009 Saab sold 39.903 cars and
produced 20.791 cars versus selling 94.751 cars in 2008 and producing 89.086 cars.

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RESTRUCTURING AND MANAGEMENT BUY-OUT

As from Closing of the Saab acquisition, the ownership structure of Spyker will change as follows:

• Tenaci Capital B.V. (“Tenaci”), a company wholly owned by Mr. V.R. Muller has made a successful bid on Mr. V. Antonov’s current shareholding in Spyker consisting of 4.6 million ordinary shares. As agreed in 2007, when Mr V. Antonov acquired his shares in Spyker, Mr. V. Antonov will cause the transfer of the priority share to Spyker if and when he would dispose of his shareholding. A resolution to cancel the priority share will be proposed at the upcoming EGM.

• Messrs. N. Stancikas, M. Bondars and Mr. V. Antonov will retire as members of Spyker’s Supervisory Board effective as per the date of Closing.

• Tenaci will grant to Spyker two loans. One for an amount of USD 25 million towards payment of part of the Purchase Price for Saab upon completion of the transaction. A second loan for an amount of EUR 57 million for repayment of all of Spyker’s current outstanding loans to banks and other financial institutions controlled directly, or indirectly by Mr. V. Antonov. This loan mirrors the existing terms (including the lender’s right to convert EUR 9.5 million into ordinary shares at a conversion price of EUR 4.00 per share).

• The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale are not being disclosed at this time. Victor R. Muller, Spyker’s CEO, stated: “We are very much looking forward to being part of the next chapter in Saab’s illustrious history. Saab is an iconic brand that we are honoured to shepherd. We are delighted to have secured the jobs and livelihoods of thousands of loyal Saab employees, suppliers and dealers and to have given reassurance to the 1.5 million Saab drivers and enthusiasts around the world. It was breathtaking to see so much support from the global Saab community over the last months which not only shows the strength of the brand but also helped us in our relentless determination to get the deal done.”

“Spyker Cars will provide Saab with the backing required to compete as a competitive global brand along with an entrepreneurial leadership team sensitive to the uniqueness, heritage and individuality of the Saab brand. I would like to extend my sincere gratitude to Vladimir Antonov for his formidable support during the past two years. His contribution has allowed Spyker to get to the point that this
transaction was made possible. I also want to extend my gratitude to Messrs. Stancikas and Bondars as Members of the Supervisory Board. They have made very valuable contributions to our company
during their respective terms.”

“Finally I would like to thank the Swedish Government for its constant support for our efforts culminating in granting the Guarantee in favour of the European Investment Bank today for an EUR
400 Million loan to Saab which we hope to secure in the coming weeks.”

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Jan Åke Jonsson, CEO of Saab Automobile AB said: “It has been a challenging 15 months for Saab but our global organization has shown a fighting spirit that will serve us well going forward. The
agreement with Spyker Cars has secured Saab’s future and will enable us to maximize the brand’s potential through an exciting new product line-up with a distinctly Saab character.”

“Today’s news is great for Saab’s customers, dealers, suppliers and employees around the globe. The level of passion and support shown to Saab over recent months has been remarkable and I would like
to take this opportunity to thank all of those people who continued to believe that Saab deserved a future. Now we aim to get back to the execution of our business plan and with the continued support
of our employees and business partners I am confident we will succeed.”

Nick Reilly, President GM Europe, added: “As a responsible corporate citizen in Europe, and throughout the entire period, GM has always had the hope to find a positive solution for Saab that
would avoid a wind-down of the brand. We have worked very hard with many parties, including governments and investors, and I’m very pleased that we could come to such a positive conclusion
that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker Cars on their way forward.”

-Ends-

Note for the media, not for publication
For further media information, please contact:

Saab Automobile Press Office
Tel: +46 (0)520 279797

Spyker Cars Europe, PFPR Communications:
Mike Stainton
T: +44 (0) 1622 77 66 87
M: +44 (0) 7739 891 040
E: mike.stainton@pfpr.com

Tom Housley
T: +44 (0) 1622 766510
M: +44 (0) 7746 646 356
E: thomas.housley@pfpr.com

Peter Rawlinson
T: +44 (0) 1622 691 361
M: +44 (0) 7971 472 715
E: peter.rawlinson@pfpr.com

Spyker Cars North America, PCG Campbell:
Shane Smith
T: +1 310 224 4965
M: +1 310 224 4965
E: ssmith@pcgcampbell.com

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The Timeline For Saab Automobile In January

Posted on 07. Jan, 2010 by .

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* January 7th – Saab Automobile’s prospective buyers are to submit their bids to GM’s Deutsche bank. There may or may not be a decision today.

* January 10th – Representatives from the Swedish Government will be arriving in Detroit to provide GM, “more information”.

* January 11th – Saab Automobile is expecting to restart the factory and production should resume. This will be a big day for Saab Automobile.

* January 31st, Saab dealerships in the United States will begin their own wind down which will be available until Oct 31st, 2010.

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TTELA Reports: Spyker To Proceed To Next Stage

Posted on 15. Dec, 2009 by .

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According to TTELA, Spyker is to proceed to the next stage in the process to buy Saab Automobile.

General Motors’ process to sell Saab Automobile has taken another step. The European Investment Bank (EIB) and the government have received support to go in depth with one of the stakeholders.

– I know that the bank has given a name to work with and we have also begun to look at the candidate who is the main track, says Joran Hagglund, state secretary at the Economy Ministry, told TT.

For Saab to be able to get the loan from Bank of 400 million, approximately SEK 4.2 billion, the new owner must meet the Bank’s review. Government and SNDO review is to examine whether the state should provide the necessary loan guarantees.

– We will include an economic analysis and see where Saab will enter the business image of stakeholders. For us, the same requirements apply as before – the taxpayers should not suffer,” said Joran Hagglund.

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Spyker Cars Is Said To Be Favorite Amongst Bidders

Posted on 11. Dec, 2009 by .

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skyker
Photo Credit: Spyker Cars

According to TTELA, Spyker is said to be the favorite candidate out of the parties interested in buying Saab Automobile.

Here’s the article below, loosely translated.

Spyker said to be favorite

TROLLHÄTTAN – Updated 18:09 – Spyker Cars pulls up in pole position when General Motors is now close to deciding for whom to negotiate with the end to buy Saab Automobile, said a source told news agency TT.

According to the stakeholders that GM will be under way to choose an operator who has experience in automobile manufacturing, but on a smaller scale. It should not be a new name, but a company that has omskrivits for their interest.
The data suggest that the Spyker Cars is GM’s favorite.

The company reported discussing buying Saab in its entirety. The plans are to pursue a full-scale car production in both design and development and manufacturing in Sweden.

After GM’s board last week gave Saab a deadline to the end to find a potential buyer walked Spyker Cars spokesperson out and confirmed that it held talks with GM.

The Dutch company has several similarities with the Koenigsegg Group, who surprisingly dropped out of the store for just over two weeks ago.
Like the Koenigsegg is a small loss of weight sports car manufacturer. Spyker produces around 50 super-luxury sports cars per year. Over the past five years, the listed company has gone back every year. Last year, landed the loss of 23.8 million euros, equivalent to 250 million.

Spyker is behind the Russian financier Vladimir Antonov – which is a major shareholder in a Russian and a Lithuanian bank. There are also Arab interests through Mubadala, an investment company from Abu Dhabi, which saved the company away for bankruptcy two years ago.
Spyker Cars has today 135 employees at its facility in Zeewolde in the Netherlands. But in November the company announced that production at the end of the year should be transferred to the subcontractor CPP in Coventry in the UK cost-cutting.

From Spyker Cars is one with scant comment. Mike Stainton, the public relations company PFPR Communications, which handles media relations, neither confirm nor deny if Spyker entered deeper into negotiations with GM.

– I can not give any information about how the negotiations go, “he says.

But he insists that Spyker is still interested in buying the Saab Automobile.

– The statement from last week in which Spyker Cars confirmed to be agreed with the owner Convers Group has expressed interest in Saab, has not changed, “says Mike Stainton.

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Koenigsegg Group Hope For Completion in November

Posted on 22. Oct, 2009 by .

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The Koenigsegg Group that is in the process of buying Saab from GM, hopes for this process to be wrapped up in November according to TTELA.

It looks like they will be waiting for the EU Commission as well as the Swedish Government, then the Koenigsegg Group & BAIC need to complete their deal, and then finally the sales process should be complete.

Koenigsegg hope for completion in November

Gothenburg CEO for Koenigsegg Group, Christian von Koenigsegg, was working at Saab’s office in Gothenburg where he was told about the EIB loan.

– It is an important milestone we have passed today, but many important milestones remain, and says he is well aware that the money not yet secured.

The money needs to fall into Saab’s account before the year end according to Koenigsegg.

– Timing is critical. There should be no more delays,” he says.

In addition to the news from the Debt Office and ultimately the government on state guarantees and the approval of the commission must Koenigsegg Group have clear agreement with the Chinese Beijing Auto, BAIC.

Negotiations with the former owner GM of Rights regarded as the most formal.

– We have found a way to break down. It is well emerged because we have negotiated a long time,” said Christian von Koenigsegg.

The new business plan will Saab be profitable at 100 000 cars sold. In addition, the company intends to cooperate with many different partners in the industry to be cost effective.

– We have a realistic view of where Saab is and how it should move forward,” said Christian von Koenigsegg to explain that the bank believes in the business plan.

To cope with that drive Saab to the company in 2012 is expected to be profitable on its own merits requires about 11 billion according to Koenigsegg. BAIC will contribute around three billion of the company becomes a minority owner of the Koenigsegg Group. But Beijing Auto’s interest based on that Saab may loan.

– All parties need to have everyone on board. I see before me that all processes will be completed on the same day, or almost. Probably in early November,” said Christian von Koenigsegg.

He does not want to go into the details of how the negotiations with BAIC go or if the Chinese company will be taking over the tools of the old 9-5. BAIC is interested in Saab’s technology.

An additional sponsor is not seeking Koenigsegg Group, owned by companies controlled by American businessman Augie K Fabel, Norwegian businessman Bard Eker and Christian von Koenigsegg.

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The Swedish Press On The EIB Loan Approval Yesterday

Posted on 22. Oct, 2009 by .

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Here are two articles from Swedish Radio and The Local on the EIB Loan Approval yesterday.

Today endorsed European Investment Bank, EIB, Saab Automobile loan application. The decision is a stepping stone to the Swedish automaker to receive a loan of up to over four billion crowns.

It was a happy Christian von Koenigsegg that received the message.

– It is an important milestone in the shop, so it feels good.

What do you have convinced the Bank that this is something you can believe in?

– The overall picture, it’s business plan is, it’s Saab as a company, what they look like today and what future plans are.

After the EIB’s decision today opens the commission an audit to ensure that the loan does not conflict with state aid rules.

Christian Berggren, professor of Industrial Engineering at Linköping University, says there are many questions about Saab Automobile to get into a profitable business so that you can repay the loan.

– Based on the known facts about the automotive world and how it looks to rival firms so there must be something extraordinary in order to ensure credibility of this plan. Saab must have had wings again in any way, how can I say. If this works, then we rewrite the textbooks on the automotive and industrial economy of the automobile, for which there has been something that has not previously been possible.

According to Christian Berggren is the great danger that the bill for the loan goes to the Swedish taxpayers. And there are far better ways to support Swedish industry but to ensure that risky projects, he says.

But Christian von Koenigsegg says that taxpayers need not worry.

– Of course, Saab, and we do our best to make this to work, it is number one. Number two is that the Debt Office and thus the Swedish taxpayers have adequate security for its guarantee in the form of the securities Saab submits to the National Debt Office. In the end, there is collateral, but the main goal is to repay the money with a successful business.

[…]

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European Investment Bank Decides On Koenigsegg Group Loan For Future Eco Products On October 21st

Posted on 29. Sep, 2009 by .

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The European Investment Bank decides on the Koenigsegg Loan on October 21st according to E24. This loan application, if granted, will provide Saab Automobile the money for future environmentally friendly technologies in future products.

In my dialogue with the EIB, this date is still on schedule, and realize that the decision will dictate the future direction for Saab Automobile’s products, moving forward.

The big issue with this loan is that it still needs the Swedish Government’s approval for it as a guarantor, then it goes to the European Commission to be signed off on and finally to the EIB. That entire process needs to take place by October 21st. That’s a lot of paperwork shuffling for some big bureaucracies, so I wish them all luck with this loan being fast tracked by then.

Here’s the article by E24 below.

European Investment Bank, EIB, has since Koenigsegg Group submitted a loan application for 400 million euros worked to evaluate it. About three weeks, on October 21, the EIB should take a decision – yes or no.

But this applies only if further detailed negotiations. This means that Koenigsegg Group and Saab may have to wait for the money for next year.

– The Board may, in October to give its approval for continuation of detailed negotiations on financial contracts, but I can not say how long it takes before any loan can be paid. It can take months, says Eva Srejber, Vice President of the EIB.

Just over two weeks ago signed the Beijing Automotive, BAIC, a letter of intent with the Koenigsegg Group to become minority shareholders and go in with a capital.

That an agreement between the companies are not likely to be clear about three weeks is not crucial for the Bank’s approval. Eva Srejber says that much can happen after 21 October and that the bank may choose to say no to a loan at a later stage.

– If Koenigsegg Group agrees to our demands, the process will go faster.

But while the EIB and the Koenigsegg Group for a dialogue on the possible loan of three other ongoing processes in parallel. The commission must give its “no objection”, which means it has no objection to the loan, and the government, the Commission and the borrower must agree on whether the state guarantee in line with state aid rules.

In addition, the National Debt Office along with the government agreeing with Koenigsegg Group on the terms of this guarantee.

Secretary of State Joran Hagglund (C), which is the government’s chief negotiator in the deal, saying that there are constant updates due to changing demands from the EIB and the Government.

– There is much work left to do and we need to be agreed on several important points before we take a decision. But I can not say how the business plan has been revised.

According to Joran Hagglund, the business plan, stress tested on many occasions, which means that you are testing it under different economic conditions. But he would not respond to what stress tests have shown.

The EIB, which demands that any loan will contribute to better environmental development and security. Currently watching the EIB in the business plan and the bank makes a thorough review. And the government believes it is important that Saab can be competitive in a number of markets in order to display the loan guarantees.

– Our starting point is that we will be ready with our work and can agree with the Koenigsegg until the Bank takes its decisions in three weeks.

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