Court to rule on NEVS-Saab extension request this week

Nevs Saab plant

A decision regarding National Electric Vehicle Sweden’s (NEVS) application for a three-month extension to its reorganisation, could come as early as this week.

The Saab brand manufacturer’s Trollhattan plant is currently not producing vehicles as it looks to secure investment from two interested parties, with these widely thought to be either Dongfeng or Mahindra & Mahindra.

The Swedish manufacturer laid off 155 people in October in a bid to slash monthly costs from SEK200m (US$26.5m) to just SEK35m, while also stopping contracts with more than 100 engineering consultants as it looks to battle SEK600m of debts to 600 creditors.

“I know the District Court has sent out a letter, not to all creditors, but the creditors present at the meeting on 8 October,” a NEVS spokesman in Trollhattan told. “I think the Court wants to have an answer from them today or tomorrow. They will go through what the creditors say and if they have any objectives [objections] or if they recommend the prolongation. “Then the Court is supposed to make [its] decision this week – I don’t know exactly which date. “If everything is in place and the creditors think it is a good idea…we have the possibilities for the District Court to also decide to prolong.”

NEVS would not be drawn on the identity of the two interested parties, citing a “non-disclosure agreement,” although several reports focus on the Chinese and Indian companies as potential investors.

“I can neither confirm nor say no,” was all NEVS would confine itself to noting.

NEVS still employs around 380 people at the Trollhattan factory, some 180 of whom work on producing body work to Orio, formerly Saab Automobile Parts.

NEVS  says it in contact with the local Council as well as the IF Metall and Unionen labour bodies, who are also on the creditors committee.

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