Northvolt applies for reconstruction in the US

Northvolt applies for “Chapter 11 reorganization” in the USA, which should free up approximately SEK 2.7 billion.

– Chapter eleven is the best or perhaps the least bad option for Northvolt right now if it comes to avoiding bankruptcy and having some kind of conditions to cope with the future, says SVT’s economics reporter Johan Winberg.

Scania confirms to SVT that they have entered into a 1.1 billion kroner loan to Northvolt.

Scania’s press manager Erik Bratthall confirms that this is not an advance payment for future deliveries but a loan with security.

– We are doing this to secure production in Skellefteå, he says.

“A little thoughtful”

IF Metall’s chief security representative in Skellefteå at Northvolt, Mikael Stenmark, gives a spontaneous reaction to the announcement:

– I am happy to hear that you believe that you are securing the salaries and that part. But we’re still a bit dubious about the longer-term effects.

– We will continue the work environment work as usual, we will work with a long-term perspective in this context. We have to get the systematic work environment work rolling, says Mikael Stenmark, IF Metall, to SVT.

Harald Mix, co-founder and investor in Northvolt, supports the decision.

– A necessary step to strengthen Northvolt’s capital structure, while enabling the company to continue its operations, he says in a comment.

The announcement that Northvolt is applying for reconstruction in the US means that operations in Skellefteå are secured at least during the first quarter of 2025, communications manager Matti Kataja told SVT.

– The reason we choose this process is that it is very advantageous for Northvolt.

What does this mean concretely for the business in Skellefteå?

– As usual, we continue to produce battery cells, the company can fulfill all its obligations towards customers, suppliers and employees.

“Getting access to capital”

Matti Kataja highlights that, through the reconstruction, Northvolt gets access to capital equivalent to 245 million dollars.

– Now, for a number of months, we can work through a number of issues at the same time as we get access to capital that allows us to continue producing battery cells, he says.

Kataja says that the company aims to be finished with the process by the end of the first quarter of 2025. Until then, operations in Skellefteå must be secure.

– This is a strong platform that we can work from while we review how we should work going forward. We can continue to run our business in Skellefteå and Västerås.

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