NEVS plans to launch a Saab 9-3-based EV will come to nought unless the company can obtain new financial backing

NEVS' plans to launch a Saab 9-3-based EV will come to nought unless the company can obtain new financial backing

The District court of Vänersborg, Sweden, on Friday (29 August) approved the application for reorganisation from Saab owner National Electric Vehicle Sweden. 

The court named Lars Eric Gustafsson, a lawyer with the Hamilton law firm in Stockholm, as administrator during the reorganisation period. 

The troubled carmaker earlier had suffered a setback following an earlier decision by the district court to reject a request from its Chinese owner to place the company in receivership until new financing could be found.

National Electric Vehicle Sweden (NEVS), the company established in June 2012 to take over Saab's assets after bankruptcy, had applied for protection from creditors but the district court of Vaenersborg said the application was incomplete.

A court statement said: "The information in the NEVS file regarding planned financial solutions appear vague and is completely undocumented."

NEVS spokesman Mikael Oestlund earlier told the Agence France Presse news agency: "We will try again. Our goal is to get more time for a reorganisation and we will of course consider every way to provide further useful information."

Swedish media has reported NEVS has been negotiating with Mahindra & Mahindra in India and China’s Dongfeng in an attempt raise funds to cover substantial debts to suppliers.

The negotiations are said to be still progressing, but are complex and taking more time than expected.

NEVS said in its application to the court it owed SKR400m (US$57m) to suppliers, according to news agency TT which obtained a copy of the document.

Earlier report by Chris Wright

Show the press release

 

 

 

The District court approves Nevs’ application for reorganization
Fri, Aug 29, 2014 13:39 CET

 

The District court of Vänersborg, Sweden, today August 29 approved 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. 

Original source: NEVS