This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Saab Owner Says it Is 'Not Insolvent'

NEW YORK ( The Deal) -- Stalling Swedish carmaker National Electric Vehicle Sweden, or Nevs, on Wednesday admitted it didn't have enough cash to pay suppliers but said it wasn't yet insolvent after a supplier asked a court to push the maker of Saab cars over the brink.

The supplier has since rescinded the request, according to Nevs, which said its assets currently outweigh its debts. The company also said it's in talks with two unnamed "major" carmakers.

It didn't give a timeframe for resuming production, which has been on hold since its latest woes began in May, but insisted it would eventually be able to pay its debts.

"After the funding is secured, and after […] Nevs' business plan is updated together with its new partners, Nevs will be able to make the decision on when the Trollhattan factory can resume its production," the company said.

"Nevs today cannot say exactly when," it added, "but Nevs' suppliers will get paid."

Supplier Labo Test AB had asked a Swedish court to push the company into insolvency after Nevs failed to pay a 150,000 Swedish kronor ($21,800) bill. The Swedish government has said it has also collected millions in claims against Saab from other suppliers awaiting payment, casting additional doubt over Nevs' future and the future of cars once-synonymous with Sweden.

Nevs bought Saab in 2012 with hopes of using the carmaker's designs and expertise to produce electric cars. The company, which is 51% owned by National Modern Energy Holdings Ltd. and 49% held by Sun Investment LLC, then resumed production and made a handful of Saab cars each day at the company's factory.

When it halted production again in May, the company said "The root cause of the current situation is that one of Nevs' investors has not fulfilled their contractual obligation to finance the operations."

It did not say which of its investors it was referring to.

National Modern Energy is the investment vehicle of Sino-Swedish businessman Kai Johan Jiang, and Sun Investments is a Japanese technology investor.

The factory was last mothballed as part of a 2011 bankruptcy in the run-up to the sale. At the time, Saab was owned by Dutch high-end sports carmaker Spyker NV. Spyker had purchased the manufacturer from then-bankrupt General Motors (GM) in 2010.

The 2011 bankruptcy lured a number of bidders for Saab including China's Zhejiang Youngman Lotus Automobile Co. Ltd. and Zhejiang Geely Holding Group Co. Ltd., which bought domestic Saab rival Volvo Cars AB from Ford Motor Co.

Saab produced cars for about 50 years and was part of the Saab AB industrial conglomerate before the car activities were sold to General Motors in 1990.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $109.27 0.00%
FB $88.26 0.00%
GOOG $600.70 0.00%
TSLA $241.93 0.00%
YHOO $31.58 0.00%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs