Next.e.GO NV has announced that it will file an application with the competent district court in Aachen, Germany, to open insolvency proceedings, in a press release dated April 2. The move comes in response to recent adverse developments and challenges faced by the electric vehicle industry, including volatility in capital markets and unfavorable market conditions.
The press release stated that despite efforts by the company, it was unable to secure alternative funding as required under local regulatory frameworks owing to the prevailing market environment. The executive director has determined to initiate insolvency proceedings for Next.e.GO NV.
This decision follows the previous filing of an application by Next.e.GO Mobile SE (Next.e.GO Mobile), the main subsidiary of Next.e.GO NV, in March 2024.
In July 2023, Next.e.GO Mobile, which produces urban battery-electric vehicles, closed a $75 million fixed interest rate debt financing from Western Asset, a fixed-income asset management institution. According to a Reuters news report in October 2023, Next.e.GO Mobile had announced plans to build three new microfactories in Europe and US over the next few years to expand the production footprint of its small electric cars.
