STOCKHOLM Aug 28 China's National Electric
Vehicle Sweden (NEVS), which bought bankrupt car maker Saab in
2012, said it had applied to a Swedish court for short-term
protection from creditors while it concludes funding talks with
two major auto makers.
NEVS, which last year resumed low-volume production of the
iconic Swedish marque, halted production in May saying it lacked
enough cash to pay its outstanding debt.
The company has been talks with two unnamed car firms to
secure additional money.
"The tripartite negotiations we have with two global vehicle
manufacturers are still progressing, but are complex and have
taken more time than we predicted," NEVS President Mattias
Bergman said in a statement on Thursday.
"We need additional time to complete the negotiations and
reach an agreement."
NEVS has about 400 suppliers of direct materials and 500
suppliers of indirect materials. While the vast majority of them
have chosen to await the outcome of the negotiations, some
creditors have filed for redress with the Swedish Enforcement
Authority, the company said.
NEVS decided to file for protection because the Enforcement
Authority could force mandatory asset sales, making finalising
new funding more difficult.
(Reporting by Johannes Hellstrom; Editing by Simon Johnson and