National Electric Vehicle Sweden (NEVS) says around 50 creditors have been called to what it refers to as an “information meeting” today (26 February) in its manufacturing facility at Trollhattan.
NEVS recently said 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.
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The composition proposal includes an element of 50% for unsecured creditors on claims of more than SEK500,000 (US$60,00), 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%.
“It is an information meeting NEVS holds for creditors – it is not an official or judicial meeting,” a NEVS spokesman told just-auto from Sweden. “The administrator [Attorney Lars Eric Gustafsson, from Hamilton Law Firm] and the CEO are going to give more information…and give our goal to come out of reconstruction.
“There will be around 50 creditors at the meeting – there is no participant from the Vanersborg District Court. The brand will not be discussed.”
Should NEVS exit its reconstruction phase, the brand name could well come to the fore however, with the Swedish automaker previously noting any new majority owner would not be able to invest without having rights to the name, insisting the issue was “important to them.”
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By GlobalDataBut Saab AB is not seemingly altering its position it has withdrawn the right for NEVS to use Saab as a product name for cars.
Scandinavian supplier association, FKG, is also attending today’s meeting in West Sweden, which is occurring at the same time as NEVS is applying for prolonged reorganisation and composition proceedings to the Court in Vanersborg.
“They are not creditors, but we have very good relations with FKG – we have invited them of course,” added the NEVS spokesman.
“We always keep them informed of what is going on.”
Gustafsson formerly noted provided the NEVS composition is accepted, it was his judgement agreement could be reached with a “financially strong OEM” to allow continued business potential for creditors.
