National Electric Vehicle Sweden (NEVS) says it could settle debts with 469 of its 573 creditors in a ‘composition’ arrangement that could see the remainder paid half of what they are owed.
NEVS is currently engaged in a complex series of negotiations with an unnamed potential future investor – although talks are dragging surrounding any use of the Saab name – while the current owner – National Modern Energy Holdings (NMEH) – is looking to extricate the Swedish automaker from its current predicament.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Our main owner has single-handedly financed the reorganisation and intends to get us out of it,” said NEVS CEO, Mattias Bergman. “The composition proposal includes a composition of 50% for unsecured creditors on claims of more than SEK500,000 (US$60,000).
“Meaning from a total of 573 creditors, 469 will get their full claim paid and 104 creditors will have their claims above SEK500,000 reduced by 50%.”
Administrator, Attorney Lars Eric Gustafsson, from Hamilton Law Firm, added provided the NEVS composition is accepted, it was his judgement agreement could reached with a “financially strong OEM” to allow continued business potential for creditors.
“With this said, it is my opinion accepting the composition proposal is advantageous for the creditors,” said Gustafsson. “The alternative of a liquidation would likely result in a lower dividend several years later.”
All creditors have been invited to what NEVS refers to as an ‘information meeting’ at NEVS in Trollhättan on 26 February.
“Our reorganisation ends 2 March, but we will apply for a prolongation,” a NEVS spokesman told just-auto from Sweden.
“We have to come out of the reorganisation – this is a way to stand on our own.”
