According to Dagens industri (Di), Chris Greco, the company's lawyer in the USA, told the bankruptcy judge in Texas that Northvolt is planning for a corporate reconstruction also in Sweden.
It has not yet been initiated simultaneously with this application, but we foresee that we will carry out a Swedish reconstruction. We plan to apply for this when we have a little better insight into the timeframe for the current case, he said.
In a Swedish reconstruction, higher demands are made. Among other things, one condition is that the company is fundamentally viable, which is highly doubtful whether Northvolt meets, according to Di.
But if such is granted, the company can get the right to a state wage guarantee, which means that the county administrative board pays out the employees' salaries and other compensation.
Greco also said that Northvolt has encountered operational problems, which he called Snafu, a slang term for "situation normal – all fucked up" (approximately chaotic).
It has been chaotic when it comes to delivering batteries and fulfilling customer orders. But beyond the operational issues, there is a larger story: global sales of electric cars have slowed down, and with competition from Asia, the market has been flooded with cheaper alternatives, he said.
