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Saab maker NEVS asks court for debt moratorium to secure funding
August 28, 2014 / 9:36 AM / 3 years ago

Saab maker NEVS asks court for debt moratorium to secure funding

STOCKHOLM, Aug 28 (Reuters) - 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 David Clarke)

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