Northvolt has considered filing for bankruptcy protection in the United States.
Swedish battery maker Northvolt has discussed the possibility of filing for Chapter 11 bankruptcy protection in the United States, Reuters reports, citing a report by business daily Dagens Industri, which said it had received confidential information from people close to the matter.
This has indeed been considered as one of the options that could allow the company to survive as it hunts for capital.
As we have seen in recent months, especially in Quebec, Northvolt's descent into hell is proceeding at an infernal pace. The company, which not so long ago was considered the European benchmark in battery manufacturing and which also had plans to build a plant in Quebec, has since faced a number of problems, not the least of which is the slowdown in the expected global growth of electric vehicles.
Production problems, the loss of a major customer and cash flow problems have forced the company to reduce its workforce.
Northvolt has received about 10 billion euros since it was founded in 2016.
Dagens Industri explains that Northvolt has been considering Chapter 11 proceedings under the US Bankruptcy Code in order to put its finances on a sounder footing.
Earlier this week, the publication reported, again citing sources that talks between the company and its creditors, shareholders and at least one customer over a short-term financing agreement had reached an impasse.
One of these people told Reuters that discussions between the parties on a short-term financing agreement had resumed, although they had become more difficult in recent weeks.
A spokesman for Northvolt declined to comment on the news of a possible Chapter 11 filing.
We have been discussing various options since the strategic review began and this has not changed throughout the process,' the spokesman told Reuters. We will communicate the results as soon as we reach a conclusion, while continuing to engage with our stakeholders.
We will continue to follow this process closely and hope for a positive outcome for all stakeholders.
