Saab gets green light from EIB for property deal

ERJ staff report (AN)

Stockholm, Sweden (Reuters) -- The European Investment Bank said on Monday it has approved Swedish Automobile NV's request to sell part of carmaker Saab's property unit to a consortium of Swedish real estate investors.

Swedish Automobile, formerly known as Spyker Cars NV, last week signed a 28 million euro ($41 million) deal to sell 50.1 percent of Saab's property unit to a consortium of investors led by Hemfosa Fastigheter as part of efforts to ease its cash crunch.

"We have approved Saab's property deal," EIB spokesman Par Isaksson said. "We have no further comments concerning Saab."

Saab and Swedish Automobile have been scrambling for cash since early April when unpaid suppliers stopped deliveries, stopping production at the company's factory in Trollhaetten, Sweden. Saab also has had trouble paying employee wages.

The property deal still needs approval by the Swedish government, which declined to comment.

From Automotive News (A Crain publication)