Battery maker Northvolt makes progress toward longer-term bankruptcy financing

NEW YORK (Reuters) – Swedish electric vehicle battery company Northvolt said on Friday it expects to raise additional bankruptcy financing by the end of January after engaging with more than 100 lenders and potential investors.

Northvolt filed for bankruptcy on Nov. 21 with a $100 million bankruptcy loan from Swedish truck maker Scania, a shareholder and its largest customer. additional financing offers from investors.

Jack Luz, a lawyer for Northvolt, said at a court hearing in Houston on Friday that the company has approached more than 100 potential lenders and investors seeking new financing to allow Northvolt to complete its restructuring.

Luze said the company plans to present a longer-term financing proposal to U.S. Bankruptcy Judge Alfredo Perez at a Jan. 28 hearing.

Perez fully approved Northvolt’s pre-bankruptcy loan on Friday, after previously allowing Northvolt to draw on the first $51 million of the loan.

“We are pleased with the outcome of this hearing in which we received final approval of our requests for new financing, which is a positive step in our restructuring,” said a Northvolt spokesperson.

Northvolt has raised more than $10 billion in an effort to mass-produce EV batteries and compete with experienced and deep-pocketed Chinese battery makers.The company, which has about 6,600 employees in seven countries, said it expects to continue business as usual while it tries to restructure its debts in bankruptcy.

(Reporting by Dietrich Knaut in New York and Marie Mannes in Stockholm; Editing by Rod Nickel)