Northvolt’s reconstruction does not provide a salary guarantee in Sweden

During Thursday, it was announced that the Swedish company Northvolt is applying for a reconstruction in the USA. The plan is to release approximately SEK 2.7 billion.

But there is no guarantee that the workers in Sweden will receive that money. Opinions differ among the experts as to what is happening now.

– Wage creditors are not prioritized in any context, says Marie Karlsson Tuula, professor of civil law at the Department of Jurisprudence at Linne University.

– What you do is you make sure you have funding for the salaries of employees, otherwise it won’t work. It is difficult to run a business if you don’t pay a salary, says Guy Lofalk, reconstruction expert.

What is clear is that the actual wage guarantee will not apply under chapter 11.

That’s why you apply for chapter 11

The big goal is to solve the financial issues.

– There are many companies involved, and all are bound by the agreement you sign in chapter 11. It is easier in terms of financing, says Marie Karlsson Tuula.

Chapter 11 also protects against bankruptcy.

– As long as chapter 11 is running, no one can apply for bankruptcy.

Should the reconstruction, chapter 11, not solve the problem, things may be different regarding the wage guarantee.

– Everything is hypothetical, of course, but if it goes down the drain in the US, it will likely be bankruptcy in Sweden, if you don’t succeed in selling. Then there will be a wage guarantee, says Guy Lofalk.

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