Sono Motors companies file for protective shield and self-administration proceedings
Post date: 16/05/2023 - 13:53
Munich, Germany-based Sono Motors GmbH has filed an application for so-called protective shield proceedings – a special remedy under German insolvency law designed to accelerate the submission of an insolvency plan to quickly restructure a company. At the same time, Sono Group N.V., the U.S.-listed parent company of Sono Motors, filed an application with the Munich Local Court for self-administration, i.e. the opening of insolvency proceedings in which the company itself – under the supervision of an administrator – manages the insolvency estate.
The background to this is the final discontinuation of the »Sion« solar electric car developed by Sono Motors, announced in February, and the reimbursement of payments made for pre-orders. This was to be handled with an unnamed financier. However, according to a statement from Sono Motors, the plans fell »in connection with the insolvency of the Silicon Valley Bank and the distress sale of Credit Suisse to UBS, as well as the growing uncertainty in the capital markets associated with these events.«
Sono Motors is pursuing a new concept after the demise of the Sion and the layoff of about 250 jobs, and has focused on marketing its technologies for vehicle-integrated photovoltaics.