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Several investors have already dropped out of Northvolt’s rescue talks
Bloomberg News
Sweden’s Northvolt AB hired restructuring expert Paul O’Donnell to oversee its main factory unit, as time runs short for the struggling battery maker to mend its finances outside of bankruptcy court.
O’Donnell, who has helped Thames Water engage with creditors, will become chairman of Northvolt Ett AB, the subsidiary that contains the flagship cell-manufacturing plant in northern Sweden. Northvolt has struggled to raise US$300 million in emergency funding, with Bloomberg News reporting on Friday that talks on the package were on the verge of collapse.
“It makes sense to augment the board with an individual who has significant restructuring experience in order to guide the company through this period,” Northvolt spokesman Martin Hofelmann said in written comments to Bloomberg.
Northvolt cited O’Donnell’s significant experience in financial restructuring from his time at Blackstone Inc. and various non-executive directorships. He replaces Northvolt chief executive Peter Carlsson as chairman of the unit.
Newspaper Dagens Industri reported earlier on O’Donnell’s appointment.
Several investors have dropped out of Northvolt’s rescue talks, according to local press reports. DI reported last week that the electric-vehicle supplier was considering a U.S. Chapter 11-style bankruptcy filing, a court process that would provide protection from creditors while the company restructures its balance sheet.
The chief executive of Northvolt Ett, the company’s only functioning plant, stepped down last month after operational setbacks that fed the company’s cash crisis. The plant’s expansion project, Northvolt Ett Expansion AB, has sought bankruptcy protection.
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