NEWSLETTER
The automotive sector of the accessories has faced an economic great anguish in the last year, with several auto parts and manufacturers who request bankruptcy protection to reorganize their businesses.
In certain cases, reorganizations can mean survival for the auto parts business, but sometimes the bankruptcy process fails, and a company may need to liquidate.
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Wheel Pros, which operates as a distributor and retail of Hoonigan pieces, requested survival when requesting a bankruptcy of chapter 11 prempquered on September 9, 2024, to eliminate debt of $ 1.2 billion and provide around $ 570 million in new capital through an exit center.
Related: the auto parts chain shares good news after closing 700 stores
According to the consensual restructuring, Wheel Pros delivered 85% of its new capital interests to the headlines of first level claims and the remaining 15% to the new palants of First-Lien that seemed the loan in the deadline for the departure of the debtor.
ACCURIDE CORP., another leader of wheels and wheel products for commercial trucks and trailers, followed the Wheel Pros tracks and presented himself to the bankruptcy protection of Chapter 11 on October 9, 2024, which also seeks a consensual restructuring of his debt to continue operating as an ongoing concern.
Northvolt Cancels Chapter 11, Liquidates
And now, Northvolt AB, which manufactures electric vehicle batteries for several automobile manufacturers, including BMW, Audi, Porsche, Volvo, Polestar and the Swedish truck manufacturer Scania, obtained an order from the bankruptcy court to dismiss its case of chapter 11 after it was declared in the liquidation of bankruptcy in Sweden a few weeks ago, Elective reported.
Related: Popular Whiskey Brand Files for Banking Chapter 11
The Debtor based in Stockholm had requested bankruptcy protection of Chapter 11 on November 21, 2024, seeking a recapitalization or sale of its assets as it faced a sharp liquidity crisis.
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Since it was declared in bankruptcy, the company's restructuring and reorganization plans failed and, according to the reports, there were few hopes for the battery manufacturer to recover.
The company decided that its best option was to rule out the bankruptcy procedures of the United States and request bankruptcy in Sweden, which is similar to the liquidation of chapter 7 in the United States, the company also believed that it was better to maintain bankruptcy procedures in Sweden, since that is where the assets of the investors were located.
The company also revealed that some 1,700 employees in Sweden would be fired.
Northvolt will continue to operate
The company's Swedish bankruptcy administrator earlier this week revealed that an agreement with the shareholders had been reached to allow the company to continue operating in Sweden in reduced conditions. However, the company would need to reduce personnel in some 3,000 workers in the conditions.
Northvolt organized important investments from Volkswagen and Goldman Sachs and had more than $ 5.8 billion in total financed debt in his books when he presented Banking of Chapter 11, including more than $ 3.9 billion in loans Bridges and Convertible Debt Instruments and $ 1.9 billion in debt of first and second line, according to a statement of the restructuring officer Scott Millar.
The debtor listed $ 1 billion to $ 10 billion in assets and liabilities in his request. Its main unwanted creditors include Volta, owed $ 3.85 billion; Kfw, owed around $ 696 million; Volkswagen, owed more than $ 355 million; and the Nordic administrator and agency owed $ 154 million.
The company was founded in Sweden in 2016 as SGF Energy by two former employees of Tesla, Peter Carlsson and Paolo Cerruti. Later he changed his name to Northvolt in 2017 and planned to expand operations worldwide to several countries, including Sweden, Poland, Norway, Germany, Canada and Portugal.
It also acquired the battery technology company based in the United States Cuberg Inc. to establish an advanced technology center in Silicon Valley.
Related: Another iconic archives of the Restaurant Chain for Banking of Chapter 11
