UPDATE 2-Spyker avoids more debt in final Saab payment

* Spyker Cars pays $24 mln instalment two weeks early

* Gets inter-company loan from Saab GB

* Ends concern it may raise external debt, issue shares

* Spyker shares up 0.4 pct

(Adds details on internal funding, shares)

By Aaron Gray-Block

AMSTERDAM, July 5 (BestGrowthStock) – Dutch carmaker Spyker Cars
(SPYKR.AS: ) used internal funding rather than external debt to
pay General Motors [GM.UL] the final $24 million purchase price
for Sweden’s Saab, ending concern over how it would foot the

Niche carmaker Spyker, which has never made a profit, took
over the larger Saab from GM earlier this year and is now
working to revive the flagging brand, but the final instalment
of the purchase price had been due on July 15.

Spyker Cars said it made the payment without increasing its
external debt or issuing new shares, adding the internal funding
became available after the acquisition of Saab Great Britain
Limited by Spyker on May 31.

Spyker shares were up 0.43 percent at 2.311 euros at 0713
GMT, in line with a higher Amsterdam market.

A Spyker Cars spokesman said the company paid the final
instalment to GM using cash from Saab Great Britain.

“Saab Great Britain is a wholly own subsidiary of Spyker Cars
and has given an inter company loan to Spyker,” spokesman Mike
Stainton said.

Further concern had been sparked about the company’s ability
to fund the final part of the deal after it said in February it
still needed to secure financing for the $24 million payment.

Spyker Cars had said it intended to fund the payment
primarily through senior debt and that it had pledged assets to
GM as security for the final payment.

“The early payment of the second and last instalment
underlines our desire to finalise the transaction with GM as
soon as it was possible, enabling management to fully focus on
the future of the group,” Spyker Cars Chief Executive Victor
Muller said in a statement.

Spyker spent $400 million buying the iconic Swedish brand
Saab, $74 million of which was paid in cash for Saab, including
$25 million borrowed from a Muller investment vehicle and $25
million from an issue of shares, largely to GEM Global Yield
Fund Ltd.
(Editing by Simon Jessop)

UPDATE 2-Spyker avoids more debt in final Saab payment