Crisis at Northvolt – 600 million euros are at stake for Germany | EUROtoday

The monetary disaster of the Swedish battery producer Northvolt might price the federal authorities and the state of Schleswig-Holstein dearly. The ailing firm, which is constructing a manufacturing unit close to Heide, had utilized for restructuring proceedings beneath US insolvency legislation.

This signifies that round 600 million euros are at stake, which Northvolt acquired from the state growth financial institution KfW and for which the federal authorities and the state every assure half. The Federal Ministry of Economics stated that it can not at the moment be decided whether or not the federal authorities truly suffered any injury. “Bild” first reported on the matter.

Northvolt had utilized for Chapter 11 safety from collectors within the USA. The goal of the process beneath US insolvency legislation is restructuring and continuation. The German undertaking firm that’s constructing a battery manufacturing unit in Heide (Dithmarschen district) isn’t a part of the method.

Northvolt can initially proceed to function its enterprise beneath the supervision of a chapter decide. However, claims from donors have been placed on maintain in the intervening time and with them hundreds of thousands from the federal and state governments.

KfW convertible bond already paid out

The deferred claims embody a so-called convertible bond value 600 million euros that KfW subscribed to Northvolt AB. The capital was supplied by KfW and, based on the knowledge, totally handed on to the German subsidiary. The use of the funds is strictly tied to the implementation of the development of the manufacturing unit in Heide; the mum or dad firm has no entry to them, the ministry emphasised.

With the Chapter 11 proceedings, Northvolt AB is at the moment not allowed to pay convertible promissory notes which have change into due. KfW can not due to this fact count on to get the cash again from Northvolt in the intervening time. That’s why the federal authorities is now stepping in. But there are additionally “additional costs”.

The demand nonetheless exists, however is at the moment not enforceable, based on the Ministry of Economic Affairs. The federal authorities will due to this fact reimburse KfW for the worth of the bond plus further prices in December. Schleswig-Holstein has supplied a counter-guarantee of 300 million euros for the convertible bond and can reimburse the federal authorities.

“The state is the worst investor”

There is an opportunity that Northvolt pays again the 600 million euros plus further prices. However, a profitable restructuring course of could be a prerequisite.

The Federal Ministry of Economics advised “Bild”: “It cannot currently be determined whether the federal government has actually suffered any damage. The claim against Northvolt remains unchanged.” Once the insolvency proceedings have been accomplished, returns to the federal authorities are “possible again”. KfW would go this on to the federal authorities. It was stated that no last assertion might be made in regards to the end result of the Chapter 11 proceedings and the worth of any claims.

“Apparently Minister Habeck did not in any way check the solidity of the company before signing the funding,” stated CDU funds officer Andres Mattfeldt to “Bild”. Habeck now has to avoid wasting the quantity in his ministry. For the Federal Minister of Economics, “the media appearance with beautiful photos was once again more important than correct factual and commercial examination”. And FDP chief funds officer Otto Fricke criticized: “Unfortunately, it is another example of the state being the worst investor – and the taxpayer once again having to be liable for the dreams of the economics minister.”

Northvolt has lengthy been thought-about an amazing hope for the European automotive business with regards to battery manufacturing for electrical vehicles. The firm’s largest shareholder is the German automotive producer Volkswagen. The house owners additionally embody the US funding financial institution Goldman Sachs and BMW.