The Swedish battery maker filed for bankruptcy last week, dashing ambitions for the European electric vehicles sector – and leaving significant EU loans outstanding
Lmao, what kind of garbage article is this?! In the headline, the say Northvolt filed for bankruptcy, and in the text, they claim Northvolt filed for bankruptcy protection. Like idk, there’s a huge fucking difference between the two…
What actually happened is that Norhtvolt filed for Chapter 11 in the US, also called reconstruction.
Yes, this Euronews article doesn’t make sense.
Northvolt says that operations to continue as usual during Chapter 11 reorganization process, with company meeting obligations to customers, vendors and employees. Voluntary reorganization facilitates access to approximately $145 million in cash collateral and $100 million debtor-in-possession financing (from Scandinavian truck maker Scania). This is not even mentioned in the article.
In a nutshell, the liquidity crisis Northvolt faces is serious, we must not downplay that, but it’s far from what the article suggests for now. It’s not a collapse.
I really think we shouldn’t jump to conclusions just yet. It should be expected that when you just lost a large customer (BMW order for 2 Billion) that the finances of your company look bad. But that’s what insolvency is for isn’t it?
Also to touch upon the massive amount of money the EU is potentially on the hook for, without it we would not have ever had the chance of a European Battery Powerhouse. Nothing ventured nothing gained.