Administrator Lars-Eric Gustafsson was interviewed by Swedish radio P4 Väst today about the progress with the NEVS reorganization process. Only 12 days to go to the current deadline set by the Vänersborg district court, so time to understand the status of this critical process. Apparently, the negotiations are in a "crucial" phase again. For a possible extension to happen, a settlement with the creditors to write-off part of the debt is required and this accord needs to be in place by the 29th this month.

NEVS © 2014
NEVS © 2014

Plan B gaining traction
According to Gustafsson, the talks with the two Asian OEM manufacturers (rumored to be Mahindra and Dongfeng) have intensified. A specialized consulting firm specialized in mergers and acquisitions called Lenner & Partners (also involved in the recent takeover of Swedish truck maker (and former member of the SAAB-Scania group) by the German Volkswagen group) is said to be involved to advise on the commercials and specific IP rights issues.
At the same time, "Plan B"To transform NEVS to" NEVS Industrial Services "is silent in play and gaining traction. However ... no contracts signed for this either ...

Surprise, surprise ...
Letters were sent to the creditors today to explain the situation and invite them to dialogue with the goal to reach a settlement. As I explained in a previous article about the reorganization process, reaching a settlement is a prerequisite for continuation of the process, so no surprise there. What is they are promised on the creditors meeting on October 8th, Whether or not there is any longer a need for financing the reorganization process and hence the cry for help towards the suppliers.

So we are not only in a crucial phase when it comes to the negotiations for Plan A, B or possibly C ..., but now also with the suppliers. If they agree to the settlement, the next creditors meeting on the 29th will become a formality and the court will then rule in favor of an extension of the reorganization process by another three months. NEVS wants to need to file for bankruptcy. So crucial it is…

7 thoughts on "Crucial"

  • The creditor committee will meet today (Thursday 20 November) and discuss the situation. For the requested extension of the reorganization phase to be approved, a settlement needs to be reached with the creditors that hold together at least 60% of the total claim amount. This accord hasn't been reached yet. Fredrik Sidahl, Managing Director of Component Groups (the association of Scandinavian Automotive Suppliers) has reportedly said that he very much appreciated NEVS 'earlier strategy where they had built a lot of trust with their suppliers yet that the current forced settlement will probably brutally shatter that earned trust again.

  • Of course I meant the 9-3 NEVS did build, not 9-5

  • Impossible as the suppliers are getting shit now ... Kotz ...

  • Michael, there is no big demand for newly produced 900's. Even de second hand cars are not priced over € 10K, so no profitable plan at all.
    Even the 9 5 that NEVS builds is not a real success; There are still cars sitting on their grounds.
    If you would say GM should allow NEV to produce the 9-5 NG; that could have attracted new customers.
    It now depends on the decision the creditors will take.

  • They are all of them ill. That's bad. I told many times than they should start produce old classic cars for example Saab 900 first generations. They could so win the time which was necesary to start the production of EV cars. Every investor like get the money rush as possib; e. Saab is death because they don't be capable of following the easest terms. I'm sory but it's so.

  • 2016? From ??? Surely not from NEVS.

  • Hopefully we can buy at Saab EV before christmas

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