Northvolt hires restructuring expert to oversee Swedish factory – BNN Bloomberg

(Bloomberg) — Sweden’s Northvolt AB hired restructuring expert Paul O’Donnell to oversee its main manufacturing unit as time runs out for the struggling battery maker to repair its finances outside bankruptcy court.

O’Donnell, who has helped Thames Water engage with creditors, will become chairman of Northvolt Ett AB, the subsidiary that contains the flagship cell plant in northern Sweden. Northvolt has struggled to raise $300 million in emergency funding, and Bloomberg News reported Friday that talks about the package were on the verge of collapse.

“It makes sense to expand the board with someone who has significant restructuring experience to guide the company through this period,” Northvolt spokesman Martin Hofelmann said in written comments to Bloomberg.

Northvolt cited O’Donnell’s significant financial restructuring experience from his time at Blackstone Inc. and various non-executive board positions. He replaces Northvolt CEO Peter Carlsson as chairman of the unit.

The newspaper Dagens Industri previously reported on O’Donnell’s employment.

Several investors have dropped out of Northvolt’s bailout talks, according to local press reports. DI reported last week that the electric car supplier was considering filing for U.S. Chapter 11-style bankruptcy, a lawsuit that would provide protection from creditors while the company restructures its balance sheet.

The CEO of Northvolt Ett, the company’s only operating plant, stepped down last month after operational setbacks fueled the company’s cash crisis. The facility’s expansion project, Northvolt Ett Expansion AB, has filed for bankruptcy protection.

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