Northvolt's Strategic Move: Chapter 11 Reorganization

Northvolt enters Chapter 11 reorganization to secure $145 million cash collateral and $100 million financing. Operations in Germany, Canada, and Sweden will continue, ensuring obligations to stakeholders are met. The restructuring is expected to conclude by early 2025, alongside new investment evaluations.

Northvolt has initiated Chapter 11 reorganization proceedings aimed at optimizing its financial structure. The company's operations in Germany, North America, and its key facilities in Sweden will continue unaffected. The move is designed to maintain commitments to customers, vendors, and employees while gaining access to critical financial resources.

The Chapter 11 filings were made in the United States Bankruptcy Court for the Southern District of Texas. This strategic reorganization process grants Northvolt approximately $145 million in cash collateral and $100 million debtor-in-possession financing, enabling the company to effectively manage its current obligations and future investments.

As part of its restructuring efforts, Northvolt anticipates the process to be completed in the first quarter of 2025. During this time, Northvolt will explore proposals for new investment opportunities. Operations at key sites, including the Northvolt Ett gigafactory in Skellefteå, Sweden, will remain operational. Legal measures might also be taken in additional jurisdictions to support this reorganization.

(With inputs from agencies.)