Ad
Ad
Ad
Ad
Ad
© Northvolt
General |

Goldman Sachs takes $900 million hit on Northvolt

The Goldman Sachs private equity funds, together the 2nd-largest shareholders in Swedish battery maker Northvolt, are set to write down their $896 million investment to zero by year end, FT reports.

Funds managed by Goldman Sachs will write off nearly USD 900 million after Swedish battery maker Northvolt filed for bankruptcy, according to a report by the Financial Times.  

The Goldman private equity funds, together the second-largest shareholders in Northvolt, are expected to write down their $896 million investment to zero by year end, Reuters said, quoting the FT report.

“While we are one of many investors disappointed by this outcome, this was a minority investment through highly diversified funds,” Goldman said in a statement. “Our portfolios have concentration limits to mitigate risks.”

Bankruptcy documents indicate that Northvolt had about USD 5.8 billion in debt and just USD 30 million in available cash, barely enough to fund its operations for a week.

Goldman Sachs, JPMorgan, and Microsoft were all listed as creditors in the bankruptcy documents.

The Swedish company, once the big EV hope of Europe, had raised over USD 15 billion since its founding in 2016.

The firm’s bankruptcy comes after problems with ramping up battery production at its facility in Skellefteå, Sweden. In June, BMW pulled out of a USD 2.1 billion order for battery cells for its EVs, due to delays in deliveries.

In September, Northvolt said it would lay off around 1,600 employees.

Peter Carlsson stepped down as CEO of Northvolt after the group filed for US Chapter 11 bankruptcy protection. Carlsson was at the helm of Northvolt since its inception in 2016. He co-founded Northvolt with the mission to drive sustainable energy solutions through the creation of a pioneer in European battery production. 

The company leadership will consist of Pia Aaltonen-Forsell, Chief Financial Officer, and Matthias Arleth, the President of Cells, who will now take the role of Chief Operations Officer. Together, and supported by Scott Millar as Chief Restructuring Officer, they will jointly lead Northvolt.


Ad
Ad
Load more news
© 2024 Evertiq AB November 20 2024 12:51 pm V23.2.3-2