NEVS, owner of SAAB, is granted permission to exit bankruptcy protection

The Chinese conglomerate National Electric Vehicle Sweden (NEVS), owner of SAAB, announced yesterday that it has received authorisation to leave the creditor protection status. The Vänersborg court in Sweden approved this decision because it considers that the goal of the corporate restructuring has already been achieved and NEVS can proceed with its plans to revive SAAB.

This process has been one of the fundamental pillars of that initiative. It began on 29 August 2014, although NEVS encountered difficulties raised by the court supervising it. The consortium ultimately managed to obtain three months of protection from creditors to continue searching for partners willing to provide financial support for its projects.

NEVS obtained two further extensions of three months each on 11 December 2014 and 11 March 2015. Twelve days after this second date, the court gave its approval to the arrangement proposed by SAAB’s owner to its creditors in order to pay them part of the amount owed. The ruling took effect this Tuesday, 14 April, and NEVS has already set to work.

NEVS intends to disburse the money in two phases: the first began yesterday and will continue until sixty days have passed; the second will start on the sixtieth day and last six months. NEVS’s proposal provides for paying the total of the debt to 82% of the creditors and half of what it owes to the remaining 18%.

The press release does not offer further details on the conglomerate’s next moves. Its chairman, Mattias Bergman, had previously stated that it was imperative to leave the court’s supervision if they wanted to bring the negotiations with potential allies to a successful conclusion. The latest news on the matter mentioned that the potential partner that will help rescue SAAB is a major Asian manufacturer.

Source | NEVS