Posted By Global Banking and Finance Review
Posted on January 8, 2025
STOCKHOLM (Reuters) -The owners of Northvolt on Wednesday voted to continue operations while the Swedish electric vehicle battery maker seeks to sort out its finances, it said in a statement.
Northvolt went from Europe's best shot at an EV battery champion to seeking bankruptcy protection in a matter of months last year as production problems and dwindling funding took their toll.
Its owners, which include Volkswagen and Goldman Sachs, met in Stockholm to vote on whether to liquidate the group or allow the Chapter 11 restructuring overseen by a U.S. court to continue.
"This is a positive outcome that demonstrates the support of our shareholders as we seek to realise our ambition and maximise our value," the company said in an emailed statement after the meeting.
"Northvolt continues to make progress in the restructuring process while ramping production and executing on its transformation," it added.
Northvolt, whose motto is "make oil history", has received more than $10 billion in equity, debt and public financing since its founding in 2016.
At the time of its Chapter 11 filing in November the lithium-ion battery maker had 6,600 employees in seven countries and debts of $5.8 billion.
Swedish firms are required by law to seek a mandate from shareholders to continue operations if their equity value is estimated to have dropped below half that of their registered share capital.
A Northvolt spokesperson had said in advance that the company expected its owners to support the board's proposal to continue operations.
(Reporting by Marie Mannes and Anna Ringstrom, editing by Terje Solsvik, Louise Rasmussen and Jason Neely)
