TROLLHATTAN, Sweden -

Saab’s parent company Swedish Automobile announced Wednesday that it has paid its employees’ wages for June, secured a 25 million euro loan and expects to resume full production within two weeks.

The convertible bridge loan agreement providing the automaker with more short-term funding was made with Bahamas-based Gemini Investment Fund Limited. The loan agreement, with a six months maturity, holds an interest rate of 10 percent per year and a conversion price of 1.38 euros per share.

Moreover, Swedish Automobile may redeem the loan anytime during its term without penalty and noted it plans do so once the funding from the three-part distribution and manufacturing alliance announced last month with China’s auto dealership chain Pang Da and automaker Zhejiang Youngman Lotus Automobile Co. comes through

In which case, no dilution as a result of the bridge loan would occur.

Aside from the newly acquired short-term funding, Saab revealed it has paid its employees’ wages for June with the proceeds from a 13 million euro order from an unnamed Chinese buyer that was announced earlier this week.

"I am relieved to report that we made the June salary payments this (Wednesday) afternoon from the proceeds of the sale of cars we announced last Monday. We again extend our sincerest apologies to our employees for the hardship the late payment has caused to them,” said Victor Muller, chief executive officer of Swedish Automobile and chairman of Saab.

“We have clearly gone through a very rough patch in the past few weeks and hopefully we can now reach agreement with our suppliers so as to ensure a resumption of our production in a controlled way. Our mid- and long-term funding is secured by the Pang Da /Youngman agreements which are still subject to obtaining certain governmental approvals. Assuming these approvals are obtained, the Gemini bridge loan will be repaid in full,” he continued.

With the addition of the bridge loan to the recent sale of Saab Automobile Property real estate and the sale of 582 vehicles to a Chinese buyer, the automaker secured 66 million euros in additional funding, just this week.

Assuming receipt of the funds related to these deals takes place as expected, Saab noted it plans to restart production hopefully within two weeks. This timeline also depends on if the automaker reaches agreements with its suppliers, which includes negotiating feasible delivery schedules.

Moreover, upon receiving Gemini’s funds, and if the automaker can reach agreements with its suppliers on payment terms, Saab stressed that it hopes to complete its scheduled loan drawdown of 29.1 million euros from the European Investment Bank.

If interested in previous Saab updates, see the following Auto Remarketing stories:

Saab Receives $18.4 Million Order, Negotiates Leaseback Deal

Saab: Unable to Make Payroll, Continues Negotiation with Creditors

Saab Celebrates Vehicle Production Resuming

Saab Hopes to Restart Production with New Short-Term Funding