Press Release from Nevs

A composition to get Nevs out of reorganisation

National Electric Vehicle Sweden AB, Nevs, provides unsecured creditors a composition proposal in order to exit the reorganisation. It creates the conditions for completion of ongoing negotiations with two major OEMs and the implementation of a new business plan together with partners and owners. Nevs’ owners and management has noted the difficulty of completing this type of complex negotiations during a reorganisation and the risk premium it implies. The current negotiations, together with two major OEMs, are mainly focused on two tracks that are complementing each other. One is to form a technical joint venture company in Trollhättan and the other is to introduce a new majority owner in Nevs, with the plan of making Saab cars a global premium product.

–     The negotiations are progressing but we also see the complication of reaching an agreement when we are in a state of reorganisation. Our main owner has single-handedly financed the reorganisation and intends to get us out of it. In order for this to be possible financially, we need to reach a composition arrangement with the creditors, says Nevs CEO, Mattias Bergman.

The composition proposal includes a composition of 50 percent for unsecured creditors on claims over 500’000 SEK. Meaning that from a total of 573 creditors 469 will get their full claim paid, and 104 creditors will have their claims above 500’000 SEK reduced by 50 percent.

–     Provided that Nevs’ composition proposal is accepted, it is my judgment that the prerequisites are favorable to also reach an agreement with a financially strong OEM, and thereby enabling a continued business potential for the creditors. With this said, it is my opinion that accepting the composition proposal is advantageous for the creditors. The alternative of a liquidation would likely result in a lower dividend several years later, says the Administrator, Attorney Lars Eric Gustafsson, Hamilton Law Firm.

All creditors are invited to an information meeting at Nevs in Trollhättan on 26 February.

Attached is the Administrator Report. Click here to read it on Hamilton law firm’s website. 

Mikael Östlund Director Communications and Public Affairs

Bob Clark
Member
1 year 7 months ago
It is good to get some information, but I am not sure what this all actually means. It would be so good to have Tim R’s take on this, because he is generally able to deduce what may lie behind the public words. I think that what this indicates is that NEVS is sufficiently confident about being able to reach a deal with Mahindra or someone else to feel that the right thing to do is to keep going. If “the negotiations” were not going anywhere this would have been the time to give up and try to sell Stallbacka… Read more »
Eugene
Member
1 year 7 months ago

I’m afraid, you’re a bit way too positive, Bob.
In my view, it’s all vice versa. They’re cutting down creditors to get out of this story without putting money in it. Kai Johan Jiang wants to pull out of this situation as much as he can, that’s why he did not invest a cent for quite a long time. Negotiations are likely to fall apart, partially because of brand name, partially because Mahindra does not need NEVS and its debts now. It can grab the remains whatever they be after the bankcruptcy.

Like they say, Sad but true.

Bob Clark
Member
1 year 7 months ago

Well let’s just hope I am right and you are wrong!

Phillip
Guest
1 year 7 months ago
As fans why don’t we try to be positive. I’d like to think you are right Bob. Time will tell. I think that Tim’s account has been blocked because his last post has been taken down and his login has been changed to “archive”. Even though it probably wasn’t the best look for him to sign-off on the day he got his new BMW he has put in more effort than anyone else over the last few years and the weight of all this would have been hard for him. I have really appreciated your effort Tim. But we all… Read more »
phermansson
Member
1 year 7 months ago

Tims account has not been blocked and no post has been taken down, it has just been converted. He can still log on whenever he feels like and his departure from SU was not spontaneous, it was planned over a longer period of time. He has some pretty big changes coming in life with a bigger family and work to focus on. And no, it didn’t happen on the same day that he picked up his bmw… His move to BMW had very little to do with him leaving SU…

Eugene
Member
1 year 7 months ago

Yes, I would hope for that, but it’s not much hope that’s left.

mnztr
Member
1 year 7 months ago

I don’t think so, if they simply wanted out they would just let it go bankrupt. This deal will require a substantial injection of funds. There is no way NEVS currently has this kind of cash. Hopefully the largest creditor is GM.. 🙂

ohansen
Member
1 year 7 months ago

Why on earth would it be good to have Tim R’s take on this? It would either be something completely negative about the people involved, or a message that he knows something, but don’t want to share whatever with the rest of us…

Angelo V.
Member
1 year 7 months ago
Would the creditors/suppliers be enthusiastic about working with the new owner—-if they just lost 50% of what was due? I’m not asking that as a rhetorical question—-it’s a real question. Do these suppliers just know that there’s always a risk and they’d be willing to ramp up again for the new owner or would there be a bitter taste and they’d walk away from Mahindra or any other new controlling owner? In any case, I find this report encouraging. If it’s not bad news, it’s good news! And from what I see here, it’s not bad news. Things continue to… Read more »
hughw
Member
1 year 7 months ago

How can you have faith in a company as a creditor when they previously promised to pay everyone in full,

Angelo V.
Member
1 year 7 months ago

You can’t, if it’s the same group of people sitting across from you at the table. That’s why it’s imperative that if Mahindra buys in—-they are in control and they sweep the old crew out. If the creditors are dealing with a new company, they might still be gun-shy, but I would think they might be more willing to try again.

saabyurk
Member
1 year 7 months ago

Could it be that the OEMs want this stated composition guaranteed before signing a final agreement, and this is a way of guaranteeing what debt they will be taking on? Keeping my fingers crossed.

Ægir
Member
1 year 7 months ago

NEVS is a Drunk Captain of a ship on the way to China, forgot his charts, no fuel on board and stranded in the archipelago just outside Gothenburg. All around are rescue ships ready to help, but of course they want to get paid, but the captain wants them to pay for the rescue, fuel and the repairs.

Angelo V.
Member
1 year 7 months ago

Many, many months ago, I made a similar comment (RE: KJJ) but didn’t use as accurate and colorful an analogy as you did. But yes, it would seem the Captain is on the plank with about a foot left until he’s in the drink—-but for some reason, he still thinks he has as strong negotiating position. That’s at least a possibility, though not being involved, it’s very hard for us to know for sure.

saabdog
Member
1 year 7 months ago

It wouldn’t surprise me if Mahinda (or some other OEM) swoops in & get what’s left of Saab for a song. The question is…will there be a Saab after this is all said and done? I’m beginning to have my doubts.

Trued
Member
1 year 7 months ago

There has been another party (an old lover) trying to buy the production line and take it all home.

hughw
Member
1 year 7 months ago

Rachel and her father?

Trued
Member
1 year 7 months ago

No

dcpattie
Member
1 year 7 months ago

Investor AB?

Doug R.
Guest
1 year 7 months ago
Much legal jargon. My take aside from the certain creditors agreeing to take a big hit,,, and agreeing prior to deal is asking alot… The real problem is the Saab name and license… One doesn’t happen without the other.. I believe Saab AB and Mahindra, must be be getting close or if a deal isn’t struck SOON its over, and that time is coming very soon. The chicken game goes for only so long… The courts may very well say enough is enough… I doubt Mahindra will just wait for a fire sale through bankruptcy and wouldn’t want to drag… Read more »
Angelo V.
Member
1 year 7 months ago

Doug: Great thought, RE stock options/stock holdings. I wonder if they’re actually considering such a move? If not, you might want to get on a flight to go talk to them. It would seem like that idea can solve a few problems.

Doug R.
Guest
1 year 7 months ago

I am ready buddy I am ready,, lol It certainly would make sense,,, Only if Mahindra is on a path of success. Then Saab AB could be a contributor of tech that the brand so desperately needs to compete and the RD for certain technologies would be cut down significantly.

saabdog
Member
1 year 7 months ago

Doug — that is an interesting take about Saab AB potentially becoming a partner through stock options. I think this could be an excellent solution. I hope something mutually beneficial for all parties can be achieved.

Trued
Member
1 year 7 months ago

Saab dog remember my article about SAAB AB ant that they are the only possible owners. If they are interested, but I guess there has been so much negativity surrounding the cars from Trollhättan combined with inadequate management to lead a car company, that we are now seeing the curtain coming down in the finale.

saabdog
Member
1 year 7 months ago

Yes, Trued, I remember your article. At the time, I thought it was a little far fetched. But I must admit, you were on to something. The stock options “option” may be a kind of back door way for Saab AB to be a part of the company without too much risk. It would leave Mahindra putting up all of the capital to give it a go. Looks to me like a “win-win” situation.

Phillip
Guest
1 year 7 months ago

You may be right Trued but if this is not yet a fact and just speculation aren’t you making this job harder for NEVS and other parties? I know its human nature but I think this has gone on for so long, we are all over it, so why don’t we as contributors focus on some positive things to say about Saab, like the cars we have now which got us into Saab in the first place. That’s ok if you have brought out but if this is true maybe you shouldn’t contribute.

Trued
Member
1 year 7 months ago

Philip, You should watch Your tounge (fingers on the keyboard), You may have personal thaughts on us in the SU crew but keep them for yourself or we will take You out of here. We control this site and what is published here.

Daniel B
Member
1 year 7 months ago
I´m sorry to say, but this is just the attitude that is not needed here. Phillip only pushed the benefit of trying to put the focus on positive things like our cars and what we do with them. Live with them, Love them mostly. I´v always thought that is the very reason why we come here as a community to hang out and share experiences. My two Saabs are great daily drivers! Had the 9-3 TTiD Aero for 4 years now and the ONLY thing that I have changed is the rubber inlet pipe. My 2012 perk Passat on the… Read more »
ingvar
Member
1 year 7 months ago

If it is Mahindra lurking behind the scen,is it not possible that some sort of partnership between them and SAAB AB can
came out as a result and open up the name issue so the cars still can be called SAAB?
I Think that ev. future cars must be called SAAB to succed.

saabyurk
Member
1 year 7 months ago

I think I made a dumb comment above. If what Trued says is true, could KJJ have figured out this is the end? And, if he can exit reconstruction before the court forces bankruptcy, he can sell off assets under his control, and recoup some of his money rather than see it all go down the drain under court control. Possible scenario?

Angelo V.
Member
1 year 7 months ago
Wow, that would be some trick. I don’t know if he could. I sort of picture someone standing on a large, flat piece of slate or flag stone, 100 feet in the air. The slate breaks off and falls to the Earth, flat. In this scenario, KJJ is the one standing on the slate as it’s falling—-moments before it crashes to the ground, he could walk off of it or jump off—-but would it be a smooth landing? No—-he would walk off/jump off, but he would still be falling at the same rate of speed that the flat slate he… Read more »
saabyurk
Member
1 year 7 months ago

This is one reason why I should never comment on anything the least bit business related.

Angelo V.
Member
1 year 7 months ago

LOL.

Paul Willis
Member
1 year 7 months ago
I recently saw an article from just-auto that had some interesting quotes from a “spokesman” from NEVS: –“Both of them [OEMs] want to come to an agreement – they are very thorough…to make sure they are getting a good investment and of course we want to find a deal that is beneficial for us,” a NEVS spokesman in Trollhattan told just-auto. “It has taken a long time – maybe longer than we thought from the beginning but at the same time we are making progress. [We are] investing [an] incredible amount of time and effort into this and so are… Read more »
Michael Specht
Member
1 year 7 months ago

Business with indian companies (such as Mahindra & Mahindra) require a lot of patience. So, wait and see. The good thing here is the strong debt reduction.

aus715
Member
1 year 7 months ago

Do we actually know for certain at this juncture who ‘the major OEMs’ actually are? Or have I missed that bit?
I can’t imagine the suppliers getting bitten for a third time. That’s a bridge too far…

RS MOTORSPORT
Member
1 year 7 months ago

NEVS is not future, it was blind alley. They only stole what left to China… How easy… Mahindra has money, but why they have to make deal with NEVS, when they if they want ofcourse can make deal with SAAB… So yes, I think only SAAB CARS future is SAAB, nobody else… We wait 5 years and in this time nothing happened…. So sad.

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