Northvolt’s Bankruptcy Deals $531M Blow to Swedish Investors
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Sweden’s state-owned pension investors, collectively known as the AP Funds, have fully written down their entire investment in bankrupt battery maker Northvolt AB.
The funds had invested 5.8 billion Swedish kronor ($531 million) in Northvolt’s shares and convertible debt via the jointly-held vehicle 4 to 1 Investments AB. The value of the investment — equivalent to nearly 0.3% of their overall assets under management — has been marked down to zero, according to a spokesman for AP4.
Northvolt filed for Chapter 11 bankruptcy protection in the U.S. in November after a bid to secure rescue funding fell short, leaving the company with little cash and $5.8 billion in debt. The battery maker has yet to line up investors willing to commit funds to allow it to emerge from the legal proceedings.
One of the funds, AP2, said in its annual report that its Northvolt stake was worth 1.5 billion kronor at the beginning of 2024, corresponding to 17% of investments in sustainable infrastructure.
RELATED: Northvolt Bankruptcy Hits Danish Pension Fund Hard
“4 to 1 Investments will continue to maintain a constructive dialog with the company to protect invested values and act in the best interests of the company in the long term,” AP2’s head of real assets Helena Olin said in the report.
The fund still “sees a need for a European ecosystem of companies for electrification and fossil-free transportation,” she said.
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