Nine billion pension kroner could disappear in the Northvolt crisis

Published 24 November 2024 at 10.02

Economics. Northvolt's reconstruction could mean big losses for Swedish pension funds, reports SVT Nyheter.

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The AP funds, AMF and Folksam have invested close to nine billion kroner in the company, and up to 90-95 percent of the value may be lost according to a source for SVT.

Outgoing CEO Peter Carlsson confirmed at a press conference that the pension money is affected by the process. At the same time, new investors receive more favorable terms, such as higher interest rates and better collateral, which can attract capital.

– We follow the process closely in dialogue with the company and try to work to secure our assets, says Jenny Askfelt-Ruud on The AP funds' joint company 4 to 1 Investment, to SVT.

If the reconstruction fails, the original owners risk losing almost everything. The Danish pension fund ATP has already written down the value of its investments in the company, and it is now clear that a reconstruction according to American Chapter 11 does not guarantee that the company will avoid bankruptcy.