Northvolt Files for Bankruptcy as Cash Drops to $30 Million (1)

Northvolt AB filed for bankruptcy protection in the US after a desperate bid to secure rescue funding fell short, leaving the struggling battery maker with just one week’s cash in its accounts.

The Swedish electric vehicle supplier will seek to restructure under Chapter 11 of the bankruptcy code, it said in a statement on Thursday. Northvolt had about $30 million in available cash, it said in a filing, and $5.84 billion in debt.

The company decided to take the US legal route to provide a well-known framework for existing investors and third parties that have shown interest in providing financing, ...