Court Denies Creditor Protection For Saab Parent NEVS Photo:
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Mike Stevens | Aug, 29 2014 | 2 Comments

Saab parent National Electric Vehicle Sweden (NEVS) has failed in its bid to gain court protection against unpaid suppliers while it continues negotiations on future funding.

A key creditor, supplier Labo Test, has withdrawn its petition to have NEVS declared bankrupt, but a number of the company’s nearly 1000 suppliers continue to press for action with the Swedish Enforcement Authority.

This week, a Swedish court has rejected NEVS’ protection application, describing the Chinese-owned company’s solution for future funding as “vague and completely undocumented”.

"For instance, there is no reasonably exact information about financing needs over time or regarding the timing and size of funds that may be received," the court said in a statement yesterday.

The company intends to appeal the decision, which if upheld could result in the mandatory sale of NEVS and Saab assets - a loss that would impact heavily on the chance of any successful funding negotiations.

“The tripartite negotiations we have with two global vehicle manufacturers are still progressing, but are complex and have taken more time than we predicted,” NEVS President Mattias Bergman said.

“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.”

The Wall Street Journal reports Saab’s debt is currently around AU$560,000, but another 91 claims potentially amounting to tens of millions in Australian Dollars are waiting to be processed.

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