German government planning to deny Porsche’s loan request

There are reports emerging that the government of Germany is planning to deny Porsche its request for a 1.75 billion Euro state loan. The carmaker applied for the loan earl this month to alleviate its financing crisis after a failed attempt to takeover VW.

Porsche is under a pile of 9 billion Euros in debts. The state’s denial of the loan came under advisement from the state-owned bank KfW. The decision, which has a current status of ‘informal’ will be formalized by a state committee this coming July, putting more heat on Porsche. It is also known that Porsche is trying to cut a deal with Qatar by selling 25 percent of its stake for 2.5 billion Euros. New reports coming out are saying that Qatar is planning to increase its stakes in the carmaker and that Daimler may also attempt to purchase a stake in the ailing car company or loan Porsche money instead. This has been an distressing for VW, which sees Porsche as shying away from an understanding by its controlling families the previous month.
Read Article

pennfootball - 6/22/2009 3:23:20 PM

+2 Boost

NEIN!!!

wins555 - 6/23/2009 11:12:33 AM

+1 Boost

Porsche was trying to takeover VW and THEN they became broke. Before all of this, Porsche made 3 billion euros the previous year.

g2ok - 6/22/2009 5:06:51 PM

-4 Boost

It would be wise for the German government to consolidate VW, Porsche and Audi into a single company with just 2 brands. I think Porsche may be history. Controlling families ?? - are they in the feudal system in Europe.

cheinyeanlim - 7/1/2009 10:39:45 AM

+1 Boost

Could this be the next big automaker filing for bankruptcy just as GM and Chrysler have in the U.S.?

http://www.pupuweb.com/blog/porsche-requests-loan-from-germanys-state-bank/