Saab, or more specifically Swedish Automobile (Swan), has received a monetary lifeline from North Street Capital, LP. The deal will generate $10 million in cash (for shares of Swan common stock) by this Friday, followed by a loan of $60 million, expected to close next week.
If North Street Capital sounds familiar, it’s because the investment group purchased Spyker
from Swan late last month. The U.S. based private equity firm spent $44 million to acquire the unprofitable supercar builder, which sold just 36 cars in 2009.
Acceptance of the North Street Capital deal illustrates that Swan has lost hope in bridge funding from Chinese partners
Youngman and Pang Da. While some money has been received from the Chinese companies, it isn’t enough to continue the reorganization of Saab, which is essentially out of cash.
Like Lindsay Lohan’s career, Saab has demonstrated a remarkable ability to rise from the dead
. The North Street Capital deal buys them time, but the funding isn’t enough to continue operations on a long-term basis.
Unless the Chinese government approves the pending deals with Pang Da and Youngman, the money from North Street Capital may prove just enough to fund Saab’s swan song.