The company that bought the Swedish car manufacturer Saab out of bankruptcy faced a bankruptcy petition of its own Aug. 12. According to The Associated Press, supplier Labo Test petitioned a Swedish court to declare National Electric Vehicle of Sweden bankrupt. The company said that NEVS had failed to pay a bill of 150,000 kronor ($22,000) since February.
NEVS actually has a number of creditors coming after it for debts, according to The Wall Street Journal. The company owes the Swedish Enforcement Agency 3.6 million kronor, and the government agency said that another 91 claims are waiting to be acknowledged by NEVS. Many of these claims are reportedly for several million kronor each.
Despite these mounting debts, there was some good news for the company. On Aug. 13, NEVS announced that the petition from Labo Test would be withdrawn, the Journal reported.
“The company whose representative filed a bankruptcy petition has informed NEVS that they will withdraw the case after information they have [received] regarding ongoing dialogues,” said a NEVS spokesperson, according to the news source. “We need to solve this situation and we are working on it.”
NEVS bought the Saab brand out of bankruptcy two years ago and restarted some limited production in late 2013, the Journal reported. Currently, it produces just six vehicles per day and sells them online. Though it originally intended to sell electric cars, NEVS has been producing traditional gasoline-powered cars in an attempt to get production started right away.
NEVS has announced that it is in talks with “major international automotive companies” regarding joint product development and an ownership option, the news source reported. Currently there is no deadline for the talks conclusion.
I also recently covered General Motors fall into bankruptcy. Find out how this once major car creator and supplier for the U.S. as well as the rest of the world filed for Chapter 11 Bankruptcy.
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
