According to a press release, during the reorganization Northvolt will continue to operate as usual, including the factory in Skellefteå and fulfill its obligations towards customers, suppliers and employees.
The company writes that "the chapter 11 process in the United States differs from, for example, a bankruptcy or reconstruction procedure in Sweden and many other countries."
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“This step will enable Northvolt to continue its mission to establish a domestic, European industrial base for battery production. Despite challenges in the short term, this move to strengthen our capital structure will enable us to capture continued demand in the vehicle electrification market. We are delighted with the strong support we have received from our existing lenders and our customers," says Tom Johnstone, interim chairman of Northvolt.
The process will also give the company access to new funding sources, including $145 million from a security package, the company said.
Northvolt Germany and Northvolt North America, subsidiaries of Northvolt AB with projects in Germany and Canada, are financed separately and are not part of the Chapter 11 process. They will continue to operate as usual.
The Chapter 11 filing has been filed in the US Bankruptcy Court for the Southern District of Texas. Northvolt has submitted so-called first day motions to the court. It enables the company to continue to meet its obligations to employees, critical suppliers and customers, as well as continue to pay taxes, insurance and utilities.