(Reuters) – Funds managed by Goldman Sachs will write down nearly $900 million after Swedish lithium-ion battery maker Northvolt filed for Chapter 11 bankruptcy earlier this week, Britain’s Financial Times reported on Saturday.
Goldman’s private equity funds, which together are Northvolt’s second-largest shareholders, plan to write down their $896 million investment to zero by the end of the year, the report said, citing letters to investors that the FT has seen.
“While we are among many investors disappointed by this outcome, this was a minority investment through highly diversified funds. Our portfolios have concentration limits to limit risk,” Goldman said in a statement.
Northvolt did not immediately respond to a Reuters request for comment.
The group went from being Europe’s best bet in a vital industry for the energy transition to racing to stay afloat in a matter of months this year, hampered by production problems and dwindling funds.
Northvolt CEO and co-founder Peter Carlsson resigned on Friday, a day after the company filed for bankruptcy protection in the US.
In November 2019, the company had completed its $1 billion capital raise aimed at financing its plans to build Europe’s largest lithium-ion battery factory, led by Germany’s Volkswagen (ETR:) and Goldman.
