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12.21.2011 19:46

Chinese Firms Lose from Saab Bankruptcy

An executive with Zhejiang Youngman Lotus said part of the company's prepaid capital for the acquisition bid will be used to set up a 50-50 joint venture with Saab
By staff reporters Wu Jing, Yu Zhixiang

(Beijing) – Reeling from the bankruptcy announcement of Saab Automobile AB, Chinese investors are moving to tally up the losses.

On December 19, a local court in Sweden announced its approval of Saab's bankruptcy application. The following day, Pangda Automobile Trade Co. (SHE: 601258), one of the bidders for Saab, suspended its stock trading in Shanghai for the day. Pangda, the largest auto dealer in China, said in an exchange filing on the same day that it will book a write-down, according to accounting rules, to reflect possible losses from its 45-million-euro prepayment to Saab for car purchase contracts. 

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