Nevi (company)
Encyclopedia
Nevi was a Bergen
, Norway
-based financial company. Owned by Vital
, it experienced a rapid growth during the 1980s, before nearly going bankrupt and being taken over by Bergen Bank
in 1988.
The company experienced a boom starting in 1980, when it had total assets of 1.4 billion Norwegian krone
(NOK). By 1982 it had reached NOK 3.5 billion, by 1984 NOK 8.5 billion, and peaked at NOK 15.9 billion in 1986. The company established itself in Denmark in 1982 and bought Staten Bank Holland in 1984. The following year it established the subsidiary Sleipnir UK and bought the British Baltic PLC, and bought the Danish stock broker firm Erik Møller Eftf. After profits from 1980 through 1985, the company started having losses in 1986. In 1987 the company lost large sums in the bankruptcy of VIP Scandinavia, then the company closed its operations in Britain and the Netherlands. That year the company had a loss of NOK 597.6 million.
In 1988, it was Scandinavia's largest financing company with operations in Norway, Sweden, Denmark, Island and the Netherlands. It had a total assets of NOK 14 billion, half of which was short-term loans in the money market
. To pay for the defaults, Vesta lent Nevi NOK 960 million in 1987 and 1988. This caused Vesta to stand at the verge of bankruptcy and to secure sufficient liquidity had to sell Nevi. Nevi was thus bought by the largest creditor, Bergen Bank, for NOK 1.5 billion, of fear of the losses they would have if the company file for bankruptcy.
Bergen
Bergen is the second largest city in Norway with a population of as of , . Bergen is the administrative centre of Hordaland county. Greater Bergen or Bergen Metropolitan Area as defined by Statistics Norway, has a population of as of , ....
, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
-based financial company. Owned by Vital
Vital
Vital or Vitals may refer to:* VITAL for Children, a charitable organisation* Vitalism, the doctrine that life cannot be explained solely by mechanism* Vitalism , the Jain teacher Mahāvīra's philosophy...
, it experienced a rapid growth during the 1980s, before nearly going bankrupt and being taken over by Bergen Bank
Bergen Bank
Bergen Bank was a Norwegian commercial bank in existence between 1975 and 1990. It was created as a merger between Bergens Privatbank and Bergens Kreditbank while the bank Kvam Privatbank was acquired in 1979. In 1988 it bought Nevi. Bergen Bank, which was based in Bergen, Norway, merged with Den...
in 1988.
The company experienced a boom starting in 1980, when it had total assets of 1.4 billion Norwegian krone
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
(NOK). By 1982 it had reached NOK 3.5 billion, by 1984 NOK 8.5 billion, and peaked at NOK 15.9 billion in 1986. The company established itself in Denmark in 1982 and bought Staten Bank Holland in 1984. The following year it established the subsidiary Sleipnir UK and bought the British Baltic PLC, and bought the Danish stock broker firm Erik Møller Eftf. After profits from 1980 through 1985, the company started having losses in 1986. In 1987 the company lost large sums in the bankruptcy of VIP Scandinavia, then the company closed its operations in Britain and the Netherlands. That year the company had a loss of NOK 597.6 million.
In 1988, it was Scandinavia's largest financing company with operations in Norway, Sweden, Denmark, Island and the Netherlands. It had a total assets of NOK 14 billion, half of which was short-term loans in the money market
Money market
The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit,...
. To pay for the defaults, Vesta lent Nevi NOK 960 million in 1987 and 1988. This caused Vesta to stand at the verge of bankruptcy and to secure sufficient liquidity had to sell Nevi. Nevi was thus bought by the largest creditor, Bergen Bank, for NOK 1.5 billion, of fear of the losses they would have if the company file for bankruptcy.