Saab owner files creditor protection with Swedish court

Article by Andrew Christian, on August 30, 2014

National Electric Vehicle Sweden (NEVS), now owner of Saab, has filed an application with a Swedish court for short-term protection from creditors while it concludes financing discussions with two major carmakers. NEVS resumed in 2013 low-volume output of Saab but stopped production in May saying it does not have enough cash to pay its outstanding debt.

NEVS has been holding discussions with two undisclosed carmakers to secure additional funds. NEVS President Mattias Bergman said in a statement that the negotiations the Chinese company has with two global carmakers are still progressing.

He remarked talks are complex and have taken more time than NEVS predicted. He added that the company needs more time to complete the negotiations and reach an agreement. NEVS has around 400 suppliers of direct materials and 500 suppliers of indirect materials.

While a majority of NEVS’s suppliers have opted to wait for the result of the negotiations, some of the company’s creditors have filed for redress with the Swedish Enforcement Authority. This prompted NEVS to file for since because the Enforcement Authority could force mandatory asset sales, thus rendering finalizing new financing more difficult.

Topics: saab, sweden

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