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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.

» Updated: 10 October 2024, 22:32

» Published: 10 October 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.

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By TTThis article has been altered and translated by Sweden Herald

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