U.S. equity firm to invest $70 million in Saab

Race-car fan and private-equity executive Alex Mascioli is pumping $70 million into Saab as the Swedish automaker works to stay afloat.

Mascioli's firm, North Street Capitol, is buying $10 million in shares of Swedish Automobile, which owns Saab, and is also giving the company a $60 million loan to pay for the carmaker's reorganization.

U.S.-based North Street Capital struck a deal in September to buy the Spyker sports-car business from Swedish Automobile for $44 million.

Saab has been waiting for the Chinese government to approve investments totaling $338 million by Zhejiang Youngman Lotus Automobile Co. and Pang Da. Saab has been out of cash and unable to pay suppliers for weeks. It has been shielded from creditors by the Swedish courts. But its assembly plant has been idle since June.

Swedish Automobile says it expects to have the money from North Street Capital by the middle of next week.

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