Several Northvolt companies filed for bankruptcy on Wednesday, March 12, including Revolt and Northvolt Ett in Skellefteå.
Mikael Kubu of Ackordcentralen has been appointed as the bankruptcy trustee for the Northvolt companies that filed for bankruptcy last Wednesday. However, he is not managing the bankruptcy estate – or searching for potential buyers – alone.
A significant team of lawyers, bankruptcy trustees, and case managers from Ackordcentralen's offices in Stockholm, Gothenburg, and Umeå – approximately 25 individuals in total – are involved in the process.
Among those who have spent the most time on-site in Skellefteå is Fredrik Sundin, a lawyer and bankruptcy trustee. Though he has resided in Umeå for many years, he grew up in Skråmträsk, near Skellefteå.
Fredrik met with Norran outside the factory gates after 5pm on Tuesday. As the sun began to set behind "Doubters' Hill," we sat in his car to conduct the interview.
He says that the bankruptcy is largely handled like other bankruptcies, but that the scope makes the work special.
– Because it's so large, there are many issues we're working on in parallel, and that's why there are so many of us involved, he says.
The day Northvolt filed for bankruptcy, production in Skellefteå was at a standstill, but the very next day it was up and running again. Selling a business that's running is significantly easier than one that's stopped, Fredrik believes.
– The main purpose is to enable a sale of the entire operation as a whole, he says.
What's the interest been like?
– There's actually quite a lot of interest. We've been able to identify several interested parties for both Revolt and Northvolt Ett.
How many is several?
– Several for each company. I don't want to be more specific than that.
The interested parties range from individual players already active in the industry to investors who see business opportunities, Fredrik says.
So are these interested parties from both the automotive and battery industries?
– There are interested parties from both, yes.
Fredrik Sundin says that there are a number of interested parties, from various industries and continents.
On Tuesday, bankruptcy trustee Mikael Kubu told TT that a decision on whether to continue operating the factory will be made during the current week.
Is this a decision you make every week, or is there something special happening right now?
– It's almost always the case that we make very short-term decisions from the start because we know so little. Then we get more information, which allows us to make longer-term decisions. Now we will hopefully be able to decide on continued operation on a longer-term perspective, says Fredrik, who however believes that it depends on existing suppliers and customers.
– It's about what opportunities we have to sell what is produced and what commitments our customers and suppliers are prepared to make. If significant stakeholders want a shorter-term solution, then we will have to reconsider.
Keeping liquidity together is crucial.
– Personnel costs are covered by the wage guarantee, but all purchases we make must be paid for as usual, and it's no secret that this is a business that has been very unprofitable. Suppliers may also want deposits or similar that are not possible to handle within the liquidity that the company has.
Is there therefore a risk that these difficulties will cause production to stop already this week?
– Yes, potentially it could be. But I don't think that will be the case.
If that happens – does that mean the end for the battery factory in Skellefteå?
– Well, I don't want to say that, but it will be a different situation as a production halt risks causing problems with the production apparatus. But no, it doesn't mean a complete stop in the process.
At Northvolt Ett in Skellefteå, nearly 3,000 people work, according to information from the company earlier this year.
Determining the exact timeline for a buyer to take over is impossible, but Fredrik anticipates a quicker process for Revolt—which focuses on battery recycling—compared to Northvolt Ett.
– We have interested parties for Revolt who are already quite advanced in the sales process, and we hope to finalise an agreement within a month, with a possible handover within one or two months.
If the sale is successful, Fredrik states that the business will continue to be operated by the bankruptcy estate until the handover.
Regarding Northvolt Ett, the battery factory itself, Fredrik believes the process may be more prolonged.
– However, my hope is that we will have an agreement in place within one or two months.
What are your impressions of the potential buyers?
– I believe there are reasons to be optimistic, I truly do. But much depends on our ability to maintain battery production. If we are unable to do that, I believe there is a risk of diminished interest.
Keeping the factory running is a key factor for a successful sale, Fredrik Sundin believes.
While the sales efforts are underway, the formal bankruptcy process continues, which includes the termination of all personnel at the bankrupt companies. However, this termination is not as drastic as it may initially seem.
– All employees in Swedish bankruptcies are terminated. This is standard procedure and not unique to these companies, Fredrik explains.
The terminations are simply a necessary step in the liquidation of the companies. The notice period for all employees, typically ranging from one to six months, will begin from the middle of next week.
Fredrik clarifies that rumours suggesting employees are free to leave immediately are inaccurate.
– It is important to emphasise that you still have a duty to work during the notice period, he says.
When a potential new buyer takes over, they will, according to the Swedish Employment Protection Act (LAS), be obligated to rehire former employees based on their staffing needs.
– Typically, this involves negotiations with the union, followed by the creation of a LAS list, where former employees are offered positions they can accept or decline.
Employees won't need to reapply for their old jobs, but re-employment isn't guaranteed. A new owner might decide that a smaller workforce is sufficient.
Given the significant downsizing last autumn, is there a higher likelihood of more employees being retained?
– Yes, I believe that's a reasonable assumption, considering the organisation has already been streamlined, as I understand it.
Many employees have a one-month notice period—what happens if you haven't found a buyer by then?
– We can offer them temporary employment within the bankruptcy estate. The expiration of their notice period doesn't necessitate them leaving. However, it's the individual's choice to accept or decline if we reach that point.
For non-European employees, how does temporary employment interact with their work permits?
– That's a matter we're investigating. We've held meetings with Migrationsverket, but I can't yet disclose the outcomes. I wasn't present at today's meeting, for instance.
Ultimately, the decision of who will purchase Revolt and Northvolt Ett depends primarily on who offers to pay the most, though other factors are also considered.
– While price is the main determinant, if two identical bids are received, and one party intends to liquidate or sell assets abroad, while the other aims to maintain operations, bankruptcy law allows us to select the buyer who will continue operations.
The likelihood of a party seeking to relocate the business submitting a higher bid than one intending to continue operations would seem low, wouldn't it?
– I agree. It's difficult to conceive of someone purchasing it for liquidation here and being the highest bidder. It appears highly improbable.
The one who makes the highest bid is usually the one who gets to buy the bankruptcy estate, but there are also other factors that are taken into account. "If there are two identical bids and one wants to buy to liquidate or sell the stuff abroad, and the other for continued operation, then the bankruptcy law allows us to choose the buyer who wants to continue the operation," says Fredrik Sundin.
Currently, Fredrik and his colleagues are prioritising securing the cooperation of suppliers, customers, and, importantly, the staff.
– They need to feel this endeavour is worthwhile, and I believe they do, despite the circumstances.
What are the next steps?
– We're continuing to pursue all avenues and hope to reach a decision on continued operations shortly. Beyond that, we're focusing on ongoing staff communication and advancing the sales process. However, it will likely be some time before we can announce a buyer, Fredrik says.