Northvolt AB shareholders have voted to allow the bankrupt electric vehicle battery supplier to continue operations while it seeks new funding and restructures under Chapter 11 protection. The vote, held in Stockholm, was required by Swedish law due to the company's equity falling below half of its registered share capital. Northvolt aims to raise additional financing and exit Chapter 11 by the end of the first quarter, potentially involving partnerships with Asian competitors.
Yan Cimon, professor of Strategy Faculty of Business Administration Université Laval, talks about the future of Northvolt 's Quebec plant.
Shareholders “voted to affirm the continuation of Nortvholt’s business” at an extraordinary general meeting in Stockholm on Wednesday, the company said in a statement. While Northvolt described it as “procedural,” the vote risked derailing the company’s bid to keep going and reset its finances under Chapter 11, raising cash and shedding billions of dollars in debt. The alternative is a liquidation, and an end to the high-profile European effort to make battery cells for customers such as truckmaker Scania CV AB.
Northvolt, whose major shareholders include Scania’s parent, Volkswagen AG, and Goldman Sachs Group Inc.’s asset management arm, filed for Chapter 11 in the US in November with $5.84 billion in debt in one of the largest bankruptcies of 2024.
Bankruptcy Northvolt EV Batteries Restructuring Chapter 11
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