Court extends Saab reorganization bid until end of November

Fri, 10 Oct 2014

Saab parent company National Electric Vehicle Sweden refuses to go down without a fight. After a recent trip to court, the company is emerging with an extension on its reorganization until November 29. According to Europe Online Magazine, there's also an appointed committee of creditors and union representatives to monitor NEVS' restructuring process.

NEVS still isn't giving up hope of saving itself, and the company claims there are has two potential strategies for getting back on its feet. The main plan is to "finalize the negotiations with the two Asian automotive manufacturers," according to a press release. Those firms still aren't identified, but Mahindra may be involved. According to Europe Online Magazine, one of the businesses is looking to take partial ownership of NEVS, and the other is considering some sort of cooperation with it.

If that plan fails, the second option is to take advantage of the factory and become a contract manufacturer.

The reorganization plan was initially denied by the Swedish court and was then approved a day later. As part of it, NEVS laid off factory employees because the company didn't expect production to restart production for a while and hadn't built a car since May. Scroll down to read the company's two latest press releases about its reorganization.

The reorganizations of Nevs continues

The District Court of Vänersborg, October 8, decided that the Reorganization of Nevs will continue until November 29.

"I am pleased with the District Court's decision. This gives us time to finalize the ongoing negotiations with the two car manufacturers" said Nevs' President Mattias Bergman.

Information prior to the Meeting of Creditors at the District Court of Vänersborg October 8

Information prior to the Meeting of Creditors at the District Court of Vänersborg October 8

At the Meeting of Creditors October 8 at the District Court of Vänersborg the Administrator Lars Eric Gustafsson at Hamilton law firm will propose that the reorganization should be continued until November 29, 2014.

The Administrator has sent a preliminary reorganization plan to all creditors.

The plan shows that Nevs main track is to finalize the negotiations with the two Asian automotive manufacturers, in which several progresses have been accomplished during the last week.

As an addition to the main track Nevs prepares an alternative action with the potential to become a leading contract manufacturer and development partner to other manufacturers, which the two parties that Nevs are negotiating with think is positive. This will in that case be done by using the company's facility also to produce for external customers.

At the Meeting of Creditors October 8 the reorganization plan will be further presented.

By Chris Bruce