…was the theme of the morning at NEVS yesterday, which started with a presentation in the conference room in the main building at Saabvägen 5 in Trollhättan. This presentation turned out to be the dry-run for the information meeting with the creditors that will be taking place today in the same location.
In 12 slides (screenshots here), Director Communications and Public Affairs at NEVS, Mikael Östlund took us through the high level plan for NEVS to exit the reorganisation.
From my perspective, the information shown was essentially a summary of the more detailed information in the Administrator’s report. No surprising elements necessarily, but some slides to guide the conversation with key stakeholders. In fact, as the date on the slides stated Feb 26th, our session could well have been a dry run for the information meeting with the creditors today.
The above summary slide reads as follows:
– NEVS will be a strong vehicle manufacturer with its base in Trollhättan, with a strong competitive supplier base and a focus on electric vehicles.
– Difficult to conclude negotations with new owner(s)/partner(s) while in reorganisation
– Current majority owner has financed the reorganisation and will finance the composition
– Preparing major development projects in Trollhättan with technical partner.
– Developing a new business plan together with the new owner and the partner
– Implement the new business plan with industrial and financial partners
– Additional partnerships
– Kai Johan Jiang through NMEH to remain active minority share holder.
NEVS officially filed for reorganisation extension and composition negotiations at the Vänersborg District Court today and following today’s meeting, the creditors have until March 2nd to confirm back to the Court whether they are agreeing to the NEVS composition proposal. At least 40% of them already responded positively, which means that there is a solid chance for the court to rule in favour of the requested extension of the reorganisation. Assuming there will indeed be a positive ruling, the court will then set up a creditors meeting in a about 3 weeks, where the creditors get to vote about the composition proposal and at that point, the creditors representing 60% of the outstanding $$ volume need to be in favour. The latter is trickier but probably not impossible either, but back to the real issue: binding contracts need to be signed with “OEM A” and “OEM B” (Mahindra and Dongfeng) sooner rather than later.
SAAB today and tomorrow
As I mentioned in my earlier post, I had the pleasure of a full day in Trollhättan yesterday, together with some fellow members of the SAAB-club Stockholm. And what a great day it was… apart from the aforementioned presentation, we actually went on a factory tour, drove the new 9-3N and the 9-3EV and had a great time at the SAAB museum and with Orio. More on that tomorrow!