After running out of cash last May due to a failed deal with a Chinese backer, Saab’s owner National Electric Vehicle Sweden (NEVS) was facing bankruptcy but was thrown a lifeline by a Swedish court that awarded the struggling firm a reorganization period. That same court, the District Court of Vänersborg, has now decided that the reorganization is complete, following an agreement made between NEVS and its long list of creditors.
According to statements filed with the court, 98.2 percent of the creditors representing 98.6 percent of the amount owed by NEVS was in favor of the agreement. The agreement calls for creditors to be paid in two installments, one within the next two months and another within the next six months. NEVS has said that 469 of its total 573 creditors would be paid in full.
NEVS is currently operating on funds from its own parent, Hong Kong-based National Modern Energy Holdings, but to pay all its creditors and restart production of Saab cars NEVS is looking to establish a long-term funding deal and potential joint venture with one of two Asian OEMs, believed to be India’s Mahindra and China’s Dongfeng.
It’s thought NEVS will transfer the rights of Saab’s still-in-development Phoenix platform and its associated staff and equipment to a new subsidiary. Half of the new subsidiary would then be sold to one of the automakers in talks with NEVS, and the income generated from the sale would be enough to settle any debts. Mahindra, which is looking to acquire more foreign brands as well as establish itself in the U.S. market, is believed to be the leading suitor.
Stay tuned for an update.