China's National Electric Vehicle Sweden (NEVS), which purchased bankrupt automaker Saab back in 2012, was denied an application from a Swedish court for protection against creditors while it finalizes funding discussions with two major automakers.
The court called the solutions NEVS outlined to obtain funding "vague and completely undocumented," casting doubt over the long-term future of the company.
NEVS continued low-volume production of the iconic Swedish marque in 2013. It has not built any cars in "months" due to a shortage of money, according to Reuters.
"For instance, there is no reasonably exact information about financing needs over time or regarding the timing and size of funds that may be received," the court said in a statement.
A NEVS spokesman said the company is planning on appealing the decision.
The company has been involved in ongoing discussions with two unnamed automakers to obtain the money.
"The tripartite negotiations we have with two global vehicle manufacturers are still progressing, but are complex and have taken more time than we predicted," NEVS President Mattias Bergman said in a statement, according to Reuters.
"We need additional time to complete the negotiations and reach an agreement."
NEVS has approximately 400 suppliers of direct materials and 500 suppliers of indirect materials.
Though most of them have decided to wait the outcome of the negotiations, some have filed for redress with the Swedish Enforcement Authority, the company said to Reuters.
NEVS decided to file for protection because the Enforcement Authority could force mandatory asset sales. This would make finalizing new funding more difficult.
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