PARIS (Reuters) – Funds managed by Goldman Sachs will take a financial hit of nearly $900 million after Swedish lithium-ion battery maker Northvolt filed for Chapter 11 bankruptcy protection, reported the Financial Times on Saturday.
Goldman’s private equity funds, which together constitute Northvolt’s second largest shareholder, plan to write down their entire $896 million investment by the end of the year, the FT writes, citing letters to the investors that the newspaper was able to consult.
“While we are one of many investors disappointed by this outcome, this was a minority investment made through highly diversified funds. Our portfolios have concentration limits to reduce risk,” the bank said. American in a press release.
Northvolt did not immediately respond to requests for comment from Reuters.
One of the European pioneers in the creation of a battery sector for electric vehicles on the continent, the Northvolt group recently encountered difficulties with the loss of a major customer and lack of financing. Its chief executive and co-founder Peter Carlsson resigned on Friday.
(Surbhi Misra in Bangalore, Gilles Guillaume for the )
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