Saab has been going through rough water and is not yet out of trouble. Its EV-ambitious owner, National Electric Vehicle Sweden AB, has financial trouble.
The Board of Directors of National Electric Vehicle Sweden AB, the owners of Saab, last Thursday applied for a reorganization.
This process, in Sweden, is more or less the equivalent of Chapter 11 in the U.S.
National Electric Vehicle Sweden AB (NEVS) said it has decided to go through this process to create more time for the ongoing negotiations. The application was submitted to the district court in Vänersborg, Sweden.
“The tripartite negotiations we have with two global vehicle manufacturers are still progressing, but are complex and have taken more time than we predicted. We need additional time to complete the negotiations and reach an agreement. Therefore, we apply for a reorganization. We intend to fully pay our debts to our suppliers”, said Nevs’ President Mattias Bergman.
Nevs explained it has about 400 suppliers of direct materials and 500 suppliers of indirect materials. The vast majority of these have chosen to await the outcome of the ongoing negotiations, but some creditors have filed applications for an order to pay at the Swedish Enforcement Authority.
Nevs added that the upcoming activities from the Enforcement Authority may involve mandatory sale of assets that are supposed to be included in Nevs’ agreement with above mentioned vehicle manufacturers. The company stated loss of such assets could obstruct finalizing a contract with them so to get more time to complete the negotiations, Nevs filed for said reorganization.
The District court of Vänersborg, Sweden approved August 29 the application for reorganization from National Electric Vehicle Sweden AB.
The District court has appointed Mr. Lars Eric Gustafsson, Attorney at Hamilton law firm in Stockholm, as administrator during the reorganization period; this attorney was originally proposed by Nevs.
Recently, and likely to appease rumors about its financial trouble, Nevs revealed a prototype EV version it created based on a Saab.