... was the theme of the morning at NEVS yesterday, which started with a presentation in the conference room in the main building at Saabvägen 5 in Trollhättan. This presentation turned out to be the dry-run for the information meeting with the creditors that will be taking place today in the same location.
In 12 slides (screenshots here), Director Communications and Public Affairs at NEVS, Mikael Östlund took the high level plan for NEVS to exit the reorganization.
From my perspective, the information shown is a summary of the more detailed information in the Administrator's report, The conversation with key stakeholders. In fact, as the date on the slides stated Feb 26th, our session could have been a dry run for the information meeting with the creditors today.
The above summary slides reads as follows:
- NEVS will be a strong vehicle manufacturer with its base in Trollhättan, with a strong competitive supplier base and a focus on electric vehicles.
- Difficult to conclude negotiations with new owner (s) / partner (s) while in reorganization
- Current majority owner has financed the reorganization and will finance the composition
- Preparing major development projects in Trollhättan with technical partner.
- Developing a new business plan together with the new owner and the partner
- Implement the new business plan with industrial and financial partners
- Additional partnerships
- Kai Johan Jiang through NMEH to remain active minority share holder.
NEVS officially filed for reorganization extension and composition negotiations at the Vänersborg District Court today and following today's meeting, the creditors have until March 2nd to confirm back to the Court whether they are agreeing to the NEVS composition proposal, At least 40% of them already responded positively, which means that there is a solid chance for the court to rule in favor of the requested extension of the reorganization. Assuming there will indeed be a positive ruling, the court will then set up a creditors meeting in about 3 weeks, where the creditors get to vote about the composition proposal and at that point, the creditors representing 60% of the outstanding $$ volume need to be in favor. The latter is trickier but probably not impossible either, but back to the real issue: binding contracts need to be signed with “OEM A” and “OEM B” (Mahindra and Dongfeng) sooner rather than later.
SAAB today and tomorrow
As I mentioned in my earlier post, I had the pleasure of a full day in Trollhättan yesterday, together with some fellow members of the SAAB-club Stockholm. And what a great day it was… apart from the aforementioned presentation, we actually went on a factory tour, drove the new 9-3N et the 9-3EV and had a great time at the SAAB museum and with Orio. More on that tomorrow!