NEVS granted grace period

Troubled carmaker NEVS is to get a break from paying its debts, a district court decided on Friday.

An earlier application was rejected, but the new court decision says they think NEVS has a chance to get back on its feet again. The application states that NEVS has received a loan of SEK 20 million from its owner, Swedish radio reports. The money will be enough to finance the first month of the company reconstruction.

Details about the negotiations with two un-named automakers, generally believed to be Indian Mahindra and Chinese Dongfeng, are also included in the application.

"More time also greatly improves our chances of finalizing our ongoing negotiations," communications manager Mikael Östlund said.

The injection of funds also means that the around 600 employees in Trollhättan will receive their paychecks.

"This is fantastic news. This way we can secure wages for our members," Stefan Larsson, local representative for the Swedish Metalworkers' Union told news agency TT.

NEVS bought large parts of the bankrupt Saab Automobile firm in 2012, but defence firm Saab AB also said today it will no longer allow NEVS to use the Saab name for its cars, considering the company's dire financial straits.

NEVS has debts of over SEK 400 million.