The clock is ticking on the Memorandum Of Understanding between Swedish Automobile and the Saab's Chinese investors. Despite the MOU technically runs out today, the three companies are still in the middle of negotiations. Saab reports that the companies continue to work toward a workable solution that would satisfy all the parties involved.
According to the Automotive News, the parties are still discussing the structure of the takeover deal, and they are continuing the cooperation as if the MOU continues. Under the proposal agreement signed by Swedish Automobile three weeks ago, the Chinese companies Pang Da and Youngman agreed to purchase Saab for $142 million. Meanwhile, the Saab's former owner General Motors Co. objected to the deal because of technology sharing concerns, and announced that it won't license its technology to Saab if the deal proceeds as-written.
Saab has been operating under creditor protection, yet the protection dries out on November 22, 2011. The Saab's parent must present a proposal to pay off creditors as there are no indications that the courts would hand out an extension. Considering that production at the Saab facilities has been suspended since April 2011 due to lack of funds, the agreement with the Chinese investors, which plan to inject over $700 million in Saab, may be the company's last chance to survive.