November 22, 2014 in Editorial
Last week a story was circulated in the media in Sweden that NEVS wanted to cut its debts by 50%, the story originated out of P4 West and the source was no other than the lawyer responsible for managing NEVS reorganization. Using the correct translation from Swedish the suppliers were really pissed off about this and the interesting note, the story was firmly denied by NEVS who have always claimed that the suppliers were to be paid back in full.
What also leaked out in the story was the fact that NEVS won’t be done with the negotiations by the 29th of November which is the new deadline for the reorganization, which can be extended to yet another period NEVS can prove funding over that period of time and the suppliers agree to be away from their money a bit longer. In reality if the company was to be declared bankrupt the suppliers were to go away empty handed since there is next to nothing within the company that a bankruptcy administrator is able to sell.
So whats taking so long? A lot of people are unwilling to accept the fact that negotiations are still going on and that “it can’t possible take this long to make such kind of a deal”. And no, they’re probably right but what people need to understand that since November-December 2013 when these talks begun, a lot has changed. Back then NEVS was a healthy company with a production that had just restarted, things were going the right way, since then a lot of deteriorations have occurred at NEVS, the worst: they lost the rights to the brand name.
And according to SU sources the name is the key factor through this whole mess. Back in 2012 it took NEVS almost 6 months to negotiate the rights to the name and neither Scania nor SAAB AB were actually willing to allow them to use it and when they finally got the rights they were extremely limited compared to when Saab Automobile AB had its rights. Back then NEVS was loaded with money and had “all the time in the world”.
SAAB AB has just sold 108 Gripen aircraft to Brazil, a deal worth more than what Sweden is spending on defense over a 2 year period (more than Saab Automobile AB earned on making cars for roughly a 20 year period) and due to the tense situation in eastern Europe with the Russian Air Force constantly engaging our borders, SAAB AB is getting requests from several other countries to either acquire more Gripen fighters or become Gripen customers. SAAB AB has also made a huge deal in the Submarine business taking over a Swedish submarine plant from its German owners. SAAB AB is now gearing up to start production of one of the worlds most silent diesel electric submarines that a lot of countries have shown interest in.
So there is a lot at stake for SAAB AB Read the rest of this entry →