Sono Motors firms apply for protective shield and also self-administration procedures

May 18, 2023 12:03 PM ET
  • Munich, Germany-based Sono Motors GmbH has actually submitted an application for supposed protective guard process-- an unique remedy under German insolvency law developed to speed up the submission of an insolvency plan to swiftly restructure a company.

At the same time, Sono Group N.V., the U.S.-listed parent company of Sono Motors, submitted an application with the Munich Resident Court for self-administration, i.e. the opening of insolvency process in which the company itself-- under the supervision of an administrator-- manages the bankruptcy estate.

The background to this is the final discontinuation of the "Sion" solar electric car developed by Sono Motors, announced in February, and the repayment of repayments produced pre-orders. This was to be taken care of with an unrevealed sponsor. However, according to a declaration from Sono Motors, the strategies fell "about the bankruptcy of the Silicon Valley Bank and the distress sale of Credit Suisse to UBS, as well as the expanding uncertainty in the capital markets associated with these occasions."

Sono Motors is going after a new principle after the death of the Sion as well as the layoff of around 250 jobs, and has actually concentrated on marketing its innovations for vehicle-integrated photovoltaics.



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