Saab-Nevs to seek extension of bankruptcy protection

The owners of struggling NEVS will seek an extension of bankruptcy protection that expires at the weekend, a spokesman said Friday.

The Chinese-backed consortium, National Electric Vehicle Sweden (NEVS), took over the ailing carmaker in 2012.

NEVS planned Monday to ask for an extension of the reorganization that began at the end of August, spokesman Mikael Ostlund said.

Production at the plant was halted in May.

While undergoing reorganization, NEVS has been able to postpone demands to pay suppliers or creditors.

NEVS has said it was in talks with two unnamed Asian carmakers, one interested in part ownership of the consortium, the other considering future cooperation.

saab nevs

Hong Kong-based National Modern Energy Holdings is majority owner of NEVS, with a 78-per-cent stake. Qingbo Investment owns the rest.

Saab belonged to US car giant General Motors until the beginning of 2010, and was later taken over by Dutch boutique sports car maker Spyker.

Saab filed for bankruptcy in December 2011 although the production lines had fallen silent months earlier.

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