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Chinese companies plan to invest $933 mln in Saab
Stock Market News |
2011/10/31 02:41
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A Swedish court ruled Monday that Saab can continue its reconstruction after reviewing two Chinese companies' plans to invest €660 million ($933 million) in the struggling brand and cut 500 jobs.
Vanersborg District Court made its ruling after reviewing the plans by Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. and hearing comments by creditors, said court spokesman Peter Rosen.
The two Chinese companies said they can provide €50 million ($71 million) in immediate bridge-financing to the car maker while it is being reorganized. They also plan to inject €610 million ($863 million) to restart production, settle the company's debts and fund operations between 2012 and 2013.
The companies reached a tentative deal on Friday to buy Saab from Swedish Automobile, the Dutch company previously known as Spyker Cars, for €100 million ($141 million) — the latest rescue attempt for the company, which has been fighting for survival since it was sold by General Motors Co. in 2010.
If the deal is completed and approved by regulators it would mean that both of Sweden's car makers end up in Chinese hands. Last year, China's Geely Holding Group bought Volvo Cars from Ford Motor Co. for $1.5 billion.
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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