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The supplier has since rescinded the request, according to Nevs, which said its assets currently outweigh its debts.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.