Today at 1:00 PM it could be the end for the Swedish battery giant Northvolt. The closure will be decided at a board meeting.
Investors around the world are eagerly following Northvolt's fate, which will be decided today. The battery manufacturer's board of directors will decide at an extraordinary general meeting whether the company should continue operations or file for bankruptcy.
Northvolt has obtained Chapter 11 bankruptcy protection in the US, but this has not solved the economic crisis. The company's future hangs in the balance, and the owners are faced with a crucial choice with only two options: continuation or liquidation.
– The board of directors' proposal is that the business should continue, including taking into account the ongoing Chapter 11 process.
"This is of course what the management and the entire company are working towards and planning for. If, despite this, there is a majority in favor of liquidation, the board of directors must apply for it," says Northvolt's press officer Erik Zsiga in an email to the news agency TT .
Among the largest owners are Volkswagen with 22 percent of the shares and Goldman Sachs with 15.7 percent. A bankruptcy could mean that the owners lose their investments in the company. Northvolt's debt amounts to 38 billion Danish kroner. The company hopes to be able to write down part of the debt to ensure survival.
Northvolt ended 2024 with a loss of 40 billion kroner and also has significant debt to creditors, including several Danish companies. A potential bankruptcy would result in losses for many Danish investors who have invested in the Swedish battery project.
The situation is critical, and the outcome of today's fashion will have an impact on both Northvolt and investors.
Boosted has previously told how BMW lost patience with Northvolt last year and tore up a contract worth 14 billion kroner in half.
Volkswagen, the largest investor, stands to lose at least as much money in the event of bankruptcy. Yet VW has resigned from the board.
The battery factory has so many financial problems that a tax debt of several hundred million kroner to the Swedish Forest Service was paid at the last minute. This happened on the same day that the authorities would have declared the company bankrupt in October last year.
