Saab’s EU Loan Paid off by Swedish Government

Saab’s EU Loan Paid off by Swedish Government

Following Saab‘s declared bankruptcy, the outstanding balance on the $400 million euro ($526 million) loan given to the automaker by the European Investment Bank required payment, since it had been guaranteed by the Swedish Debt Office.

Now, the Debt Office has reported that the outstanding balance on the loan (equivalent to some $325 million) has been paid, making the Swedish government the former automaker’s largest creditor.

With Saab assets, including shares in the parts and tooling divisions held as collateral by the Debt Office (which are worth more than the loan itself), sources have reported that the Swedish government is looking to sell the automaker as a whole entity, instead of breaking up and selling off various assets through bankruptcy.

Former suitor Zhejiang Youngman Lotus Automobile Group, whose last-minute rescue bid was blocked by General Motors, causing Saab to collapse in December, is reportedly still interested in acquiring the  former Swedish automaker, though so far, no official bids have  been announced.

[Source: Auto News]