(Reuters) – Funds managed by Goldman Sachs will write off nearly $900 million after Swedish lithium-ion battery producer Northvolt filed for Chapter 11 bankruptcy earlier this week, Britain’s Financial Times reported on Saturday.
The Goldman private equity funds, which together ranked as the second-largest shareholders in Northvolt, plan to write down their $896 million investment to zero by year end, the report said, citing letters to investors seen by the FT.
“While we are one of many investors disappointed by this outcome, this was a minority investment through highly diversified funds. Our portfolios have concentration limits to mitigate risks,” Goldman said in a statement.
Northvolt did not immediately respond to a Reuters request for comment.
The group went in a matter of months this year from being Europe’s best shot in a vital industry for the energy transition to racing to stay afloat, hobbled by production problems and dwindling funds.
Northvolt’s CEO and co-founder Peter Carlsson stepped down on Friday, a day after the company filed for U.S. Chapter 11 bankruptcy protection.
In November 2019 the company had completed its $1 billion equity capital raising, aimed at funding its plans to build Europe’s biggest lithium-ion battery plant, led by Germany’s Volkswagen and Goldman.
(Reporting by Surbhi Misra in Bengaluru; Editing by David Holmes)
Comments