The District Court of Vänersborg today approved the composition proposal earlier presented by Nevs, as the stipulated number of creditors’ votes needed for the court to decide in favor of the composition proposal was achieved.
The number of present creditors entitled to vote, and those who on beforehand had approved the proposal and signed a proxy for the Administrator to vote for them, amounted to 98,2 percent of the creditors and 98,6 percent of the amount of the debt.
The composition means that claims up to 500’000 SEK will be fully paid, and that claims above 500’000 SEK will be reduced by 50 percent. Of a total of 573 creditors 469 will get their full claim paid.
The payments will be performed in two steps. The first within 60 days from the date that the Court’s decision is legally valid, and the second step within six months from the same date. The composition as well as the operating costs for the coming months will be financed by Nevs’ main owner. Nevs intends to apply for exiting the reorganization as soon as the composition is legally valid in mid-April.
“A composition was needed for Nevs to exit the reorganization in order to be able to sign commercially viable agreements with our OEM and financial partners we have been in dialogue with for a long time. We appreciate the support from our suppliers, with whom we want to continue to develop long-term relations”, said Mattias Bergman, President Nevs.
“My duty as Administrator is to secure that the composition is favorable for both the company and the creditors. Todays’ decision creates possibilities both for the development of Nevs’ business as well as future business potentials for the creditors”, said the Administrator, Attorney Lars Eric Gustafsson, Hamilton Law Firm.
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Today, Thursday February 26, 2015, National Electric Vehicle Sweden AB (Nevs) applies for prolonged reorganization and composition proceedings to the District Court in Vänersborg.
In a meeting at Nevs today, the company and the reorganization administrator will inform present creditors of the composition proposal sent earlier, together with Nevs’ goal and plan to exit the reorganization.
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
Orio acquires all the supplier-based tools for production of spare parts for Saab cars
Orio AB, formerly Saab Automobile Parts AB, has signed a contract with Nevs and has acquired all the tools located at suppliers and used for producing Saab Original spare parts for all existing Saab models. This secures that Orio can ensure the long-term availability of Saab Original spare parts for all Saab cars globally.
“This is a strategically important acquisition which safeguards the production of Saab Original spare parts in the long term and ensures that we maintain our position as the sole supplier of the entire range of original parts for Saab cars.Saab owners, workshops and other customers all over the world are now guaranteed a supply of spare parts well into the future,” says Jonas Tegström, CEO of Orio AB.
The purchase includes 12,500 tools for manufacturing of spare parts for all existing Saab models. Orio previously had the right to use the tools, but has now taken over full ownership. The tools are located with the suppliers which produce Saab Original parts. The suppliers have been informed about the change of ownership and production of spare parts will continue as normal.
Nevs and Orio AB already have a cooperation agreement concerning the distribution and support of cars produced by Nevs. Nevs will still be able to use the tools to manufacture parts for its production of the Saab 9-3 and other future models.
“Saab Original parts will be an important part of our business for many years to come and owning the tools will be financially beneficial. We will continue to increase our market share for Saab Original parts and are expanding our customer base and network of workshops in order sell our products more widely,” says Jonas Tegström.
Facts Orio AB:
– The company is responsible for warehousing, sale and distribution of Saab Original parts and accessories for all Saab Service Centers and Saab Parts Centers globally and also sell logistics and technical services.
– Number of employees in Sweden: Nyköping about 260, Trollhättan about 50. The company is headquartered in Nyköping.
– The company has subsidiaries in its 9 main markets in Europe and the USA.
– Number of employees in the subsidiaries: about 55.
– Have been responsible for Saab Automobile spare parts handling since the 1960s and are the sole distributor of the entire range of Saab Original parts.
– Storage area: around 88 000 m².
– Storage: about 70 000 articles.
– Capacity: about 30 000 order lines/day.
– Shipment of 50 trucks distributed each day.
– The company is fully owned by the Swedish state.
– On November 13, 2013, the company changed its name from Saab Automobile Parts AB to Orio AB.
National Electric Sweden AB, Nevs, has ensured the spare parts supply for the newly manufactured Saab cars by an agreement with Orio AB, former Saab Automobile Parts AB.
The signed agreement now ensures the supply of spare parts for the new Saab customers. The global distribution agreement guarantees that spare parts for the new Saab 9-3 cars manufactured by Nevs in Trollhättan, Sweden, can also be ordered from Orio AB. For service and repairs as well as warranty measures, Nevs guides its customers to the existing Saab Service Centers.
“Our new Saab customers can now be confident that the long term supply of spare parts is ensured through established Saab service centers. Both Orio AB and Nevs are glad to forge closer ties between the two companies, as our agreement gives all Saab owners a high service level”, said Jonas Hernqvist, Director Sales and Marketing of Nevs.
On December 2nd Orio and NEVS signed a letter of intent now they have signed the final agreement which is good for new and old Saab drivers. New drivers get access to a network of well educated Saab garages and mechanics, and old Saab drivers have now the certainty that Orio is here to stay and will have some more weight when asking a supplier to produce some spares for older Saab cars.
Stig Runesson, the current head of Manufacturing & Facilities, retires 1st June.
From 1st March Morgan Fransson, (today head of Paint Shop and General Assembly), will be the head of Manufacturing. Stig Runesson remains head of Facilites until his retirement on 1st June. Both Morgan and Stig are part of Nevs’ Management team until then.
Yesterday at 14:00CET (GMT+1) the sales started for the new Saab through Nevs website. It was a great start of the sale because they received a total of 15 orders of new Saabs throughout the day.
-”It is pleasing that we directly met an interest that also led to the ordered cars. And our first customer in Trollhättan actually visited me yesterday afternoon. We are humble but also hopeful for future sales. Many people have heard of and want to make an appointment for a test drive, which starts in January “– Jonas Hernqvist, Nevs Sales Manager
As we all know, the Internet sale of the new produced NEVS 9-3 Aero 2014 started earlier today, and the sale started at 14:00CET (GMT+1) on saabcars.com. And it turned out that interest in new cars is there, already at 15: 30CET (GMT+1) they had recieved 10 orders.
– “It’s quite a lot of traffic on the website, simply good statistics, said Göran Fredriksson Nevs communication department to TTELA at 16 o’clock.”
Since they have chosen to an early stage of launching the new car to sale it through their website, there were speculations on how big interest would be. And it turned out that the response and the interest in the relatively new sales channel has been pretty good.
“It feels fantastic! It is always difficult to know how it will go, “said Göran Fredriksson”