Saab carmaker fails in bid for receivership

August 29, 2014 - 12:00:00 am

STOCKHOLM: A Swedish court rejected yesterday a request from the Chinese-owned carmaker NEVS, which owns the financially-troubled Swedish brand Saab, to be placed in receivership until it could attract new financing.

National Electric Vehicle Sweden, the company established in June 2012 to take over Saab’s assets after bankruptcy, said it had applied to the court to protect itself from creditors. But the district court of Vaenersborg in south west Sweden said the application was incomplete.

“The information in the NEVS file regarding planned financial solutions appear vague and is completely undocumented,” the court wrote in a statement.  The company said they would appeal the decision. “We will try again. Our goal is to get more time for a reorganisation and we will of course consider every way to provide further useful information,” NEVS spokesman Mikael Oestlund said.

According to several Swedish media reports, NEVS has been negotiating with automakers Mahindra (India) and Dongfeng (China) to raise funds to cover substantial debts to suppliers.

“The tripartite negotiations we have with two global vehicle manufacturers are still progressing, but are complex and have taken more time than we predicted,” the company’s director Mattias Bergman said ahead of the verdict.

NEVS said in its application to the court it owed 400m kroner ($57m) to suppliers, according to news agency TT which obtained a copy of the document.