Northvolt sought U.S. Chapter 11 bankruptcy protection last November as its cash pile dwindled, trying to secure funds that would allow it to fix persistent problems in scaling up output at its flagship plant in northern Sweden.
Swedish daily Dagens Nyheter had reported on Tuesday that Northvolt was on the brink of filing for bankruptcy and that the board could decide the issue on Wednesday.
“A Swedish court-appointed trustee will now oversee the process, including the sale of the business and its assets and settlement of outstanding obligations,“ the company said in the statement.
The company, whose motto was “make oil history”, received more than $10 billion in equity, debt and public financing since its 2016 inception, counting Volkswagen, with a 21% stake, and Goldman Sachs, holding 19%, as its biggest owners.
German carmaker BMW cancelled a $2 billion order in June of last year as the battery maker failed to deliver on a long-term supply contract for battery cells signed in 2020.
Former Northvolt CEO Peter Carlsson, who stepped down shortly after the Chapter 11 filing in November, said at the time of his departure that the company needed up to $1.2 billion to restore its business.
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