Northvolt, the Swedish battery maker undergoing Chapter 11 bankruptcy reorganisation, has a new lifeline after its owners voted to continue operations while it seeks new financial backers.
Owners, including Volkswagen and Goldman Sachs, met in Stockholm on 8 January and voted not to liquidate the company.
The company said in a statement: “This is a positive outcome that demonstrates the support of our shareholders as we seek to realise our ambition and maximise our value.”
It said it continues to make progress in its restructuring process while ramping up production.
When it filed for Chapter 11 in November, the company had 6,600 employees, debts of $5.8 billion and $30 million in cash. It expects to complete restructuring in the first quarter.
Co-founder and recently departed CEO Peter Carlsson is reported as saying the company needs to raise $1–1.2 billion, probably from new and existing stakeholders.
The bankruptcy court said a meeting of creditors is scheduled for 28 January.
