Northvolt CEO: Will pay 287 million kronor according to plan

On Monday, Northvolt must pay a tax debt of 287 million kronor. The alternatives are bankruptcy, reconstruction – or personal payment liability for the board. A solution is now said to be on the table – and according to the CEO, they will pay on time.

» Published: October 10 2024

Northvolt CEO: Will pay 287 million kronor according to plan
Photo: Pontus Lundahl/TT

Northvolt's CEO Peter Carlsson states that they will pay all 287 million kronor - consisting of VAT, employer contributions, and taxes - according to plan, reports SVT.

"Of course, I believe we will solve this," he writes in an email to the channel.

According to information from Dagens industri, there is a new proposal that includes both shareholders, lenders, and customers. The help will come in the form of both regular loans and pre-orders of batteries.

Earlier on Thursday, Svenska Dagbladet and Ekot also reported that the owners have a sharp proposal for continued financing to consider.

We are currently discussing a possible solution directly with the parties involved, says Jens Söderblom, press chief at pension company AMF, Northvolt's ninth largest owner, to SvD.

Similar tones come from the fifth largest owner, Danish pension manager ATP.

"No secret"

Northvolt's communications director Matti Kataja writes in an SMS to TT that the work on financing has made "significant progress" and that they hope to be able to tell more "as soon as possible".

In parallel, the battery giant is negotiating with unions about the layoffs of 1,600 employees that the company announced in September - the majority of which are in Skellefteå.

The negotiations began today. They will continue next week, says Lena Lundgren, coordinator at IF Metall, which has over 2,000 members employed by Northvolt.

She expects an answer "at the earliest by the end of next week".

Case by case

If Northvolt does not pay its tax debts on time, it must either file for bankruptcy or apply for bankruptcy no later than the due date, i.e., Monday. This is to avoid personal payment liability for the board, says Hans Andersson, chairman of the Reconstruction and Bankruptcy Administrator's Association, to Dagens Industri.

If the payments are not made on time, the Tax Agency will first send a payment claim to Northvolt. If these invoices are not paid either, the debt will be transferred to the Enforcement Authority.

"The Tax Agency can submit a bankruptcy application to the district court, which is the one that decides on bankruptcy, if the company does not pay its taxes and fees. Assessments are made case by case when and if such an application is submitted, so it is not possible to comment on individual cases," writes Tomas Envall, section chief at the Tax Agency, in an email to TT.

Swedish battery manufacturer Northvolt, with CEO Peter Carlsson and major owners such as Volkswagen and Goldman Sachs, is in a liquidity crisis. The company is negotiating with lenders and major owners about financing, reportedly worth billions.

In addition, Northvolt is negotiating with union representatives about a notice of termination of 1,600 employees, which was issued at the end of September.

As recently as Tuesday, the subsidiary Northvolt Ett Expansion went bankrupt with debts of several billion. The subsidiary is responsible for building a new battery factory in Skellefteå, adjacent to the existing Northvolt Ett factory.

And on Wednesday, top executive Mark Duchesne left his assignment with immediate effect. He was CEO of Northvolt Ett, the company that operates the large battery factory in Skellefteå.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Weekend Push for New Industrial
2 MIN READ

Weekend Push for New Industrial Agreement as Deadline Looms

Swedes Opt for Europe as
3 MIN READ

Swedes Opt for Europe as US Travel Bookings Drop 30 Percent

Energy Efficiency Boosts Villa Prices
1 MIN READ

Energy Efficiency Boosts Villa Prices in Sweden's Real Estate Market

Elon Musk's XAI Acquires Platform
1 MIN READ

Elon Musk's XAI Acquires Platform X in Major Tech Move

Inflation Concerns Drag Down Wall
1 MIN READ

Inflation Concerns Drag Down Wall Street Indices

Sweden Seeks New Investors for
1 MIN READ

Sweden Seeks New Investors for Bankrupt Northvolt Battery Firm

US Inflation Surprises with Higher
1 MIN READ

US Inflation Surprises with Higher Than Expected February Rate

Li Ka-Shing Halts Sale of
1 MIN READ

Li Ka-Shing Halts Sale of Panama Canal Ports Amid Beijing Pressure

Princess Madeleine Addresses Criticism Over
2 MIN READ

Princess Madeleine Addresses Criticism Over New Skincare Venture

Stockholm Stocks Slide 4.5 Percent
1 MIN READ

Stockholm Stocks Slide 4.5 Percent in a Week as US Inflation Hits

French Inflation Dips Below Expectations,
1 MIN READ

French Inflation Dips Below Expectations, Impacting ECB Decisions

Cautious Consumer Spending Sees Slight
1 MIN READ

Cautious Consumer Spending Sees Slight Uptick in Sweden's Retail Sales

SSAB Faces Financial Supervisory Authority
1 MIN READ

SSAB Faces Financial Supervisory Authority Probe Over Reporting Rules

79,000 Swedes Face Student Debt
1 MIN READ

79,000 Swedes Face Student Debt with Enforcement Authority in 2024

Royal Expert Questions Princess Madeleine's
3 MIN READ

Royal Expert Questions Princess Madeleine's Skincare Venture

Gold Prices Reach New Heights
1 MIN READ

Gold Prices Reach New Heights as Trade Tariff Concerns Grow

Asian Markets Tumble as Investors
1 MIN READ

Asian Markets Tumble as Investors Brace for New US Tariffs

Trump's Tariff Plan Could Drive
2 MIN READ

Trump's Tariff Plan Could Drive Up Car Costs, Impact US Market

Ubisoft and Tencent Invest $1.25
1 MIN READ

Ubisoft and Tencent Invest $1.25 Billion in New Gaming Subsidiary

Sweden to Build Major Carbon
2 MIN READ

Sweden to Build Major Carbon Capture Facility in Stockholm by 2028

Wall Street Dips as US
2 MIN READ

Wall Street Dips as US Car Giants Slide on New Tariff Announcement

Vattenfall Prepares Autumn Application as
2 MIN READ

Vattenfall Prepares Autumn Application as Sweden Backs Nuclear Expansion

US Car Tariffs Threaten Swedish
2 MIN READ

US Car Tariffs Threaten Swedish Auto Industry, Warns Dousa

Nordic Nations Unite to Tackle
1 MIN READ

Nordic Nations Unite to Tackle Unsafe Products from Temu and Shein

Volvo Recalls 73,000 Hybrids Over
1 MIN READ

Volvo Recalls 73,000 Hybrids Over Fire Risk in Battery Charging

Four Charged in Nasdaq Stockholm
2 MIN READ

Four Charged in Nasdaq Stockholm Insider Trading Scandal

European Car Stocks Drop After
1 MIN READ

European Car Stocks Drop After US Tariff Announcement

Trump Warns EU and Canada
1 MIN READ

Trump Warns EU and Canada of Higher Tariffs Over Economic Moves

Sweden's FI Pushes for Clearer
1 MIN READ

Sweden's FI Pushes for Clearer Mortgage Rate Discount Notices

Trump's Trade Tariffs Add Pressure
2 MIN READ

Trump's Trade Tariffs Add Pressure to H&M's Struggling Sales

US Implements 25% Car Tariffs
2 MIN READ

US Implements 25% Car Tariffs to Boost Domestic Production

Sweden to Cut Ties with
3 MIN READ

Sweden to Cut Ties with Underperforming Job Placement Firms

US Tariffs Trigger Global Stock
1 MIN READ

US Tariffs Trigger Global Stock Market Dip; Volvo and Banks Hit Hard

SBAB Increases Fixed-Rate Mortgage Interest
1 MIN READ

SBAB Increases Fixed-Rate Mortgage Interest by 0.10 Points

Second-Hand Market Sees Over 40
1 MIN READ

Second-Hand Market Sees Over 40 Percent Drop in February

Tokyo Stocks Dip as US
1 MIN READ

Tokyo Stocks Dip as US Tariff Threats Shake Asian Markets

Japanese Car Stocks Tumble After
1 MIN READ

Japanese Car Stocks Tumble After Trump's Tariff Announcement

US Considers Lower Tariffs for
1 MIN READ

US Considers Lower Tariffs for China in Tiktok Sale Deal

Trump's Vehicle Tariffs Spark EU
2 MIN READ

Trump's Vehicle Tariffs Spark EU Regret and Market Reactions

Wall Street Dips as Traders
2 MIN READ

Wall Street Dips as Traders Brace for Trump's Tariff Announcement