(Bloomberg) -- Investment Management Corp. of Ontario has written down its $400 million investment in Northvolt AB, the electric vehicle battery maker that filed for bankruptcy protection last year, according to people familiar with the matter.
The Canadian pension manager bought Northvolt convertible bonds in 2023, its largest transaction in Europe at the time. IMCO manages about C$77 billion ($53.8 billion) for public-sector groups in the province of Ontario.
A spokesperson for the fund declined to comment.
Northvolt filed for Chapter 11 protection in the US in November after a bid to secure rescue funding fell short, leaving it with little cash and $5.8 billion in debt. The battery manufacturer hasn’t yet found fresh capital that would allow it to emerge from legal proceedings.
Canada’s largest pension plans poured money into the Swedish firm, which announced plans in 2023 to build a factory not far from Montreal to serve auto companies in the North American market. Ontario Municipal Employees Retirement System made three “major” investments, according to a LinkedIn post last year. Canada Pension Plan Investment Board and Caisse de Depot et Placement du Quebec also allocated money to Northvolt.
Investors globally are now writing down their exposure to the company. Sweden’s state-owned pension investors wrote off its full investment. Danish pension fund ATP is also taking a major hit on its 5% Northvolt stake. Late last year, BlackRock Inc. said it’s marking down the value of one of its flagship renewable funds, partly because of Northvolt’s collapse.
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