Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

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.

Related news
Places
People
Organisations
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Forecast: When the Mortgage Rate Will Be at Its Lowest
1 MIN READ

Forecast: When the Mortgage Rate Will Be at Its Lowest

Asian stock exchanges mixed and fluctuate
1 MIN READ

Asian stock exchanges mixed and fluctuate

Recovery on Wall Street
1 MIN READ

Recovery on Wall Street

Reports: Major Shareholder Considers Saving Northvolt
1 MIN READ

Reports: Major Shareholder Considers Saving Northvolt

GKN considers closing factory in Köping
1 MIN READ

GKN considers closing factory in Köping

Amazon makes multi-billion investment in nuclear power
1 MIN READ

Amazon makes multi-billion investment in nuclear power

Demand to work from home – strike at gaming company
1 MIN READ

Demand to work from home – strike at gaming company

The Fuel Chains Lower Fuel Prices
1 MIN READ

The Fuel Chains Lower Fuel Prices

Clear in Skellefteå: 338 officials to be laid off
3 MIN READ

Clear in Skellefteå: 338 officials to be laid off

LVMH falls – lower demand for luxury in China
1 MIN READ

LVMH falls – lower demand for luxury in China

Despite Billion-Lift – Still Tough for Municipalities
2 MIN READ

Despite Billion-Lift – Still Tough for Municipalities

Harald Mix optimistic about Northvolt
2 MIN READ

Harald Mix optimistic about Northvolt

NHL Star's Hamburger Chain in Crisis
2 MIN READ

NHL Star's Hamburger Chain in Crisis

Coop's CEO Marie Nygren is leaving her post
1 MIN READ

Coop's CEO Marie Nygren is leaving her post

Kinnevik's value decreases
1 MIN READ

Kinnevik's value decreases

Downward trend on the stock market – Kinnevik weighed
1 MIN READ

Downward trend on the stock market – Kinnevik weighed

Arla wants to buy Egyptian dairy giant
1 MIN READ

Arla wants to buy Egyptian dairy giant

Increased sales in daily consumer goods in September
1 MIN READ

Increased sales in daily consumer goods in September

Housing construction continues to increase
1 MIN READ

Housing construction continues to increase

It takes the longest time to sell an apartment
1 MIN READ

It takes the longest time to sell an apartment