Northvolt shareholders vote to continue operations despite financial trouble
Now, it is mandatory for the Swedish company, the best shot in EV battery manufacturing in Europe so far, to restructure its business. According to Reuters, Northvolt counted about 6,600 employees when the so-called Chapter 11 was filed, last November.
Northvolt shareholders gathered together in Sweden to decide what to do with the troubled company. BMW, Volkswagen and Goldman Sachs, among others, had two ways in front of them. The first was to go on with the business while seeking “financial rescue”, as reported by Reuters. The other was to stop the business and declare bankruptcy.
Northvolt needs to restructure its business
Now, it is mandatory for the Swedish company, the best shot in EV battery manufacturing in Europe so far, to restructure its business. According to Reuters, Northvolt counted about 6,600 employees when the so-called Chapter 11 was filed, last November. It’ll be interesting to see what will happen now in terms of workforce reduction, as well as production targets.
Northvolt seems to be facing debts of about 5.8 billion dollars. Reuters stated that “co-founder and recently departed CEO Peter Carlsson said the company needs to raise between $1 billion and $1.2 billion to restore its business”. New stakeholders and investors are then needed by the Swedish player. “Northvolt entered the Chapter 11 proceedings with a $100-million loan from shareholder and customer Scania“, Reuters reported.
