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Sweden’s Northvolt appoints restructuring expert to oversee main facility -report
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COPENHAGEN (Reuters) – Northvolt has appointed restructuring expert Paul O’Donnell to oversee the lithium-ion battery maker’s main facility in northern Sweden, Bloomberg News reported on Wednesday.
COPENHAGEN (Reuters) – Northvolt has appointed restructuring expert Paul O’Donnell to oversee the lithium-ion battery maker’s main facility in northern Sweden, Bloomberg News reported on Wednesday.
O’Donnell will become chairman of Northvolt Ett, the group’s key battery cells plant in Sweden, according to the Bloomberg report, which cited a company spokesperson.
Northvolt did not immediately respond to a request for comment when contacted by Reuters.
Cash-strapped Northvolt has been discussing the possibility of filing for Chapter 11 bankruptcy protection in the United States as one of several options for survival, two sources familiar with the matter told Reuters on Nov. 15.
Swedish media had reported Chapter 11 was seen as a way for Norvolt, which was set up in 2016, to sort out its finances. Its two largest shareholders are Volkswagen and Goldman Sachs.
Northvolt has missed some in-house production targets and has curtailed production at the plant in northern Sweden, according to internal company documents and company sources, Reuters reported on Nov. 18.
Northvolt Ett chief Mark Duchesne stepped down last month and was replaced on an interim basis by Angeline Bilodeau, the vice president of Northvolt’s operations in North America.
(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik and Alexander Smith)
Chapter 11 bankruptcy is a legal process that allows a company to reorganize its debts while continuing operations. It provides protection from creditors and allows the business to develop a plan to repay debts over time.
A restructuring expert is a professional who specializes in helping companies reorganize their financial and operational structures to improve efficiency and profitability, often during times of financial distress.
Lithium-ion batteries are rechargeable batteries commonly used in portable electronics and electric vehicles. They are known for their high energy density and ability to hold a charge for extended periods.
A cash-strapped company is a business that is experiencing a shortage of cash flow, making it difficult to meet its financial obligations, such as paying employees, suppliers, or servicing debt.
A production target is a specific goal set by a company regarding the quantity of goods it aims to produce within a certain timeframe, often used to measure operational efficiency and performance.
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