A Quebec Superior Court judge has declared the North American arm of Swedish battery maker Northvolt insolvent, after the provincial government moved to recover C$260 million ($190 million) in public funds, the Canadian Broadcasting Corporation (CBC) reported on Friday.
Justice Janet Michelin granted creditor protection to Northvolt Batteries North America earlier this week following the province’s request, the report said. The ruling follows the collapse of Northvolt in March, when the company reported $8 billion in debt after losing customer orders, investor support, and falling short of production targets.
Canada’s federal government has been exploring options to salvage the project. Industry Minister Francois-Philippe Champagne said in March that Ottawa was in talks to “help find a buyer for bankrupt Swedish firm Northvolt’s battery plant in Quebec.”
The company laid off its entire Canadian workforce on Thursday, a day after Quebec Economy Minister Christine Fréchette confirmed that the provincial government would no longer provide funding for the stalled electric-vehicle battery facility on Montreal’s South Shore, the CBC reported.
The court’s decision will permit Northvolt to rehire about 15 employees to oversee the site where construction of the plant was to take place, according to the broadcaster.
