The extraordinary general meeting (EGM), that was called in December, is not open to the media. However, a decision is expected to be made on the Wednesday afternoon.
Two alternatives to vote for
There are two alternatives for shareholders to vote for according to Erik Zsiga, press officer at Northvolt: continue operations or liquidate.
“The board's proposal is for the activities to continue, considering the ongoing chapter 11 process, among other things. That is of course what the management and the whole company is working towards and planning for. If, in spite of this, a majority votes for liquidation, the board will apply for this”, writes Zsiga in an e-mail to TT.
In autumn Northvolt applied for reorganisation in a court in Texas in accordance with Chapter 11 in USA’s bankruptcy legislation, after having tried in vain to get a capital injection and new loans. This was a result of the German major client BMW in June pulling a more than 20 billion order for electric car batteries due to quality and production problems.
Northvolt – with Volkswagen (VW), Goldman Sachs and Harald Mix’s Vargas Holding as the largest shareholders – had, when the application for reconstruction was submitted, already stopped a number of big projects and laid off about a fifth of the staff.
Vargas, who has previously supported Northvolt’s reconstruction plans, does not want to offer any comments ahead of the meeting about their position in the matter of liquidation or continued operation.
Folksam, a smaller owner with 0.7 per cent, will also participate in the meeting.
We are currently analysing the different alternatives and intend to participate in the meeting in order to get the opportunity to ask questions and discuss together with the other owners. Our intention is to act in the manner that best preserves value for our customers", writes Kajsa Moström, press officer at Folksam in an email to TT.
A 60 billion debt mountain
The debt mountain – which the company hopes to be able to cut in half through reconstruction – amounted to more than 60 billion kronor when the application for reconstruction was submitted to an American court.
Before Christmas, Northvolt was given the all clear from creditors to keep paying employees, key suppliers, taxes and insurance policies as well as the public benefit services that are required to keep the company running during the reconstruction.
Northvolt is aiming to conclude the construction in the first quarter of 2025.