(Bloomberg) -- Embattled electric-vehicle battery maker Northvolt AB hired financial adviser Houlihan Lokey Inc. to help it raise funds to turn its business around, according to people with knowledge of the matter.
The Swedish company filed for bankruptcy protection in the US last week after months of stalled talks with owners, customers and creditors failed to yield any breakthroughs. Co-founder Peter Carlsson stepped down as chief executive officer a day later.
The company decided to drop investment bank Rothschild & Co., which had been advising it on capital-markets matters, including an initial public offering process that was eventually shelved, the people familiar with the matter said. It engaged Houlihan Lokey instead to help in its fundraising efforts while in Chapter 11, they added.
Spokespeople for Rothschild and Northvolt declined to comment. Houlihan Lokey didn’t immediately reply to a request for comment.
At the time of its bankruptcy filing, Northvolt had about $30 million in available cash and $5.84 billion in debt. Through the court process, the company will have access to $100 million in debtor in-possession financing from Scania CV AB, the truck-making unit of Volkswagen AG and a key Northvolt customer, and to about $145 million in cash collateral.
The company is now looking to partner with one or more long-term strategic or financial investors, according to court documents. A Swedish reorganization process may follow the US process, the company said.
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