Saab To Get $70 Million Lifeline From Private Equity Firm
U.S. private equity firm North Street Capital will give Saab a $70 million investment, including an equity stake worth $10 million and a $60 million loan to the ailing car maker.
With Chinese-backed financing looking increasingly unlikely, the investment from North Street Capital, a firm run by auto enthusiast Alex Mascioli, will give Saab the resources it needs to (literally) keep the lights on at their facilities. The Chinese government has yet to approve the bridge loan being offered by both Zhejiang Youngman Lotus Automobile Co and Pang Da, and Saab’s owners fear that full payment will not be received on the October 22nd due date.
[Source: Automotive News]