Court approves reorganization application from National Electric Vehicle Sweden
29 August 2014
The District court of Vänersborg, Sweden, approved an application for reorganization from National Electric Vehicle Sweden AB (NEVS), the company working to resurrect the SAAB brand. (Earlier post.) The District court has appointed Lars Eric Gustafsson, Attorney at Hamilton law firm in Stockholm, as administrator during the reorganization period.
On 28 August NEVS applied for a reorganization to create more time for the ongoing negotiations for financing with two global vehicle manufacturers. NEVS 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. Some creditors have filed applications for an order to pay at the Swedish Enforcement Authority.
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. Loss of such assets could obstruct finalizing a contract with them. To get more time to complete the negotiations, NEVS filed for the reorganization today.
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.—NEVS President Mattias Bergman