Saab is still under state-imposed administration after declaring bankruptcy, a situation it can’t seem to pull itself out of even with financial aid from owners National Electric Vehicle Sweden or NEVS.
The company recently released new information about its inner goings on and it now reports it wants to have its debt reduced in order to ease kick-starting production.
They’ve announced that they’re meeting with creditors on February 26 at which time the’ll be proposing a 50 percent reduction for all their debts in excess of 500,000 Swedish Krona (that’s just under $60,000 US / €52,500).
According to the CEO of NEVS, Mattias Bergman, “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.”
The reduction would affect 104 out of a total of 573 creditors and if they say yes, the company could then proceed to secure a connection to an established and financially stable automaker.
This last idea belongs to the state-appointed administrator, Attorney Lars Eric Gustafsson, who went into more detail: “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.”
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