Nevs wins creditor protection, may lose rights to Saab brand

After rejecting National Electric Vehicle Sweden’s Thursday request for protection from creditors, a Swedish court has approved a revised filing that gives the Saab owner a bit longer to secure funding.

The company is said to owe creditors approximately 400 million SEK (~$57.5 million USD). Some of the suppliers recently asked the court to force the company into bankruptcy, potentially leading to asset liquidation.

Nevs yesterday claimed progress in negotiations with two companies that may be able to save the company from bankruptcy, providing the necessary investment to restart production of the all-electric Saab 9-3. Previous reports have pointed to Inda’s Mahindra and China’s Dongfeng as potential suitors.

Interestingly, the financial troubles have led Saab Group, the aerospace and defense giant, to withdraw Nevs’ rights to continue using the Saab brand, according to Reuters.

It is unclear if Saab Group will be willing to renegotiate a fresh trademark agreement for the Saab name if Nevs is successful in its quest for new financial backers.