Chinese firms Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. have agreed to buy Saab for 100 million euros ($142 million).
Saab owner, Swedish Automobile, said on Friday that it has entered into a memorandum of understanding to sell 100 percent of the shares of Saab to the Chinese companies.
Swedish Automobile said an important part of the deal "is the commitment of Pang Da and Youngman to provide long-term funding to Saab Automobile."
The memorandum of understanding is valid until Nov. 15, provided Saab stays in reorganization. Swedish Automobile said Saab's administrator, Guy Lofalk, has withdrawn his application to a Swedish court for Saab to exit reorganization.
Pang Da and Youngman will provide sufficient financing so that a court-backed reconstruction process under creditor protection can continue, a court document showed. The court had been due later on Friday to decide on Lofalk's application.
Swedish Automobile Chairman Victor Muller said the deal has "secured the future of Saab." He told Sweden's Sverige Radio that Saab would now be able to pay its creditors, restart production, launch new models and expand in China.
Muller said the Chinese companies are committed to investing 500 million euros in Saab. He told the radio station that he will stay on as Saab CEO until a new CEO is found and he will remain involved in Saab in the future.
The 100 million euros will be paid in installments, the automaker said.