Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comBankruptcy Petition Against Saab Owner Lifted
Author: Joel R. Glucksman|August 19, 2014
Bankruptcy Petition Against Saab Owner Lifted
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 On Aug. 13, NEVS announced that the petition from Labo Test would be withdrawn, the Journal reported.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.
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Bankruptcy Petition Against Saab Owner Lifted
Author: Joel R. Glucksman
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.
-
GM Returns To Bankruptcy Court Over Recalls
-
Judge to Rule Whether GM Bankruptcy Favored Hedge Funds Over Creditors
