NEW YORK (Reuters) – Swedish electric vehicle battery maker Northvolt said on Friday it expects to obtain additional bankruptcy financing by late January after engaging with more than 100 potential lenders and investors.
Northvolt declared bankruptcy on November 21 with a $100 million bankruptcy loan from Swedish truck manufacturer Scania, a shareholder and its largest customer. But this loan was not intended to carry Northvolt through the entire bankruptcy restructuring process, and the company continued to evaluate proposals for additional financing from strategic and financial investors.
The company has reached out to more than 100 potential lenders and investors looking for new financing that would allow Northvolt to complete its restructuring, Northvolt’s attorney, Jack Laws, said at a court hearing Friday in Houston.
The company intends to submit a long-term financing proposal to US Bankruptcy Judge Alfredo Perez at a court hearing on January 28, Luz said.
Perez granted full approval for Northvolt’s previous bankruptcy loan on Friday, after previously allowing Northvolt to take out the first $51 million of the loan.
A Northvolt spokesman said: “We are pleased with the results of this hearing, in which we received final approval for our proposals for new funding, which is a positive step forward in our restructuring.”
Northvolt has raised more than $10 billion in a bid to mass produce electric vehicle batteries and compete with experienced and rich Chinese battery makers. The company, which employs about 6,600 employees in seven countries, said it expects to continue normal business operations while it tries to restructure its debt in bankruptcy.
(Reporting by Dietrich Knuth in New York and Marie Manz in Stockholm; Editing by Rod Nickel)
https://media.zenfs.com/en/reuters-finance.com/1027d77db847f61356482834266a07f1
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