CDN NEWS | 
US NEWS 
Northvolt is closing in on a rescue package of about US$300 million
Bloomberg News
Goldman Sachs Group Inc. and several other investors willing to provide a bridge loan to Northvolt AB are seeking shares in the embattled battery maker’s Canadian unit as collateral in return for their help.
The investment bank, which is spearheading the group, has asked the Quebec government’s financial arm, Investissement Quebec, to give Northvolt the green light to pledge equity in the Canadian subsidiary as security, according to people familiar with the matter.
Northvolt urgently needs cash to ensure its viability and is closing in on a rescue package of about US$300 million, Bloomberg News reported last week.
Investors looking to inject fresh capital are seeking Investissement Quebec’s help because it’s a senior lender on a Canadian project: It has a $240 million senior secured loan tied to the land where a new battery plant is being built.
Northvolt is erecting the plant near Montreal with assistance from the Canadian and Quebec governments. The province committed $1.37 billion to the project and has already lent out more than a third of that amount.
If Northvolt were to go bankrupt, Quebec would first be repaid on its senior loan — as long as there’s money left in the Canadian unit — and then other investors would have the right to any remaining assets.
“We have recently seen significant progress in our dialog with stakeholders,” a Northvolt spokesperson said by text message, referring to the company’s broader discussions on funding. “We are on the right track and are now focused on concluding this process in a timely manner.”
Share This:
