Today is the day that will determine if NEVS has a future in the auto industry or not. Its judgement day for the reconstruction and NEVS has to disclose how it intends to remake its business in order to pay its creditors.
In Trollhättans neighbor city Vänersborg lies the district court and town hall and thats where the event will take place, in the same facilities where Victor Muller had to explain to his creditors how he was supposed to save Saab with the help of Youngman and Pang Da. This time there are also two companies who wants to save Saab but as you all know one of them is Indian and one Chinese.
Today NEVS will tell the court and their kreditors about the reconstruction plan, if the creditors continue to believe in the fact that NEVS has a future they will vote for the continued reconstruction of the company if they vote to discontinue the reconstruction the judge of the Vänersborg district court will take over the process and make a decision with the vote as a guideline only.
In normal cases the reconstruction almost always continues since if a bankruptcy would be forced then the creditors would most likely not receive any payments for their outstanding debt at all, all of it would be lost. This has proven to be the case with the still ongoing bankruptcy process of SAAB Automobile AB.
Several experts have given the NEVS plan thumbs down, as Fredrik Sidahl explains to P4 West, it lacks a concrete time-line. It doesn’t give the creditors anything to relate to as to when they might receive payment. Also to consider is that there is no real information in the plan as to how NEVS intends to keep the company running since it does not have any more funds available nor is able to borrow any money. Fredrik Sidahl also explained that the best option for the creditors is of course if the reconstruction continues and becomes a successful one.
So does NEVS have a future or not, according to sources I’ve talked to a new owner would not really matter in the end unless NEVS can start to actually produce something that can create an income to run the company. NEVS needs to get both its deals in place for their plan to work and they’ve been talking with the two partners for almost a year now without reaching a conclusion. They’ve spent more time on this than they did with the official purchase of Saab Automobile ABs bankruptcy estate.
There is no question in my mind that time is running out fast and NEVS needs to find some way to bring money into the company and according to the reconstruction plan NEVS is supposed to build other brands in their facilities but as most people know, there really isn’t a shortage of production capacity in Europe, more like the other way around. However there are a number of brands who would like to build their cars in Europe in order to gain market credibility and a foothold in the region, perhaps Qoros or Dong Feng? Dong Feng is already a major sponsor of events in Europe including sail racing boats and other high-class events.
I still keep all my fingers x’ed for a bright future for Saab and that I one day can buy a new 9-5 with the SAAB badge on it, but I also have no illusions that a bankruptcy can create something new out of this, if it ends now, it ends for good!, there is no coming back! Anyone believing that Mahindra is stalling in order to force a bankruptcy and thus buy the place cheaply is misinformed. That is never going to happen!
The bankruptcy estate would have very little money to operate with so an immediate liquidation of assets would take place and that means the end of it all. I’ve herd through other sources that there are already plans in place to buy the factory and to convert it into a warehouse which will support the Gothenburg & Uddevalla harbors which is in desperate need of space, Trollhättans proximity to the two harbors make it an excellent location.
You could say that NEVS is the last hope of us ever seeing a new car with a Saab badge on it again.