Noerr assists in voluntary liquidation of Northvolt company and repayment of taxpayers’ money

A Noerr team led by Thomas Hoffmann is advising the German Northvolt project company based in the town of Heide in northern Germany on its voluntary liquidation and on repaying €222 million in unused taxpayers’ money to state development bank KfW. The repayment became possible after the Northvolt project company underwent restructuring proceedings under the German Corporate Stabilisation and Restructuring Act (StaRUG), allowing it to be liquidated despite being solvent and securing satisfaction of all the company’s creditors. This enabled the German Northvolt company to successfully avoid being drawn into the insolvency of the Northvolt Group.

In 2023, Northvolt received some €600 million from KfW in the form of a government-backed convertible bond. Before the Northvolt Group went into insolvency, only part of this money had been used up to build the battery factory planned in Heide. The unused portion is now being paid back in two instalments: €153 million has already been repaid, with the remaining €69 million to follow by summer 2026. Half of the funds will be paid back to the German government and half to the State of Schleswig-Holstein.

During the voluntary liquidation, the Northvolt project company’s assets are now also to be transferred to an investor. The parties are currently at an advanced stage of intensive discussions.

Advisors to German Northvolt company: Noerr

Restructuring: Thomas Hoffmann (partner, lead, Frankfurt), Stephanie Bender (associated partner, Hamburg), Nicholas Palenker (associated partner, Berlin)

Corporate/Capital Markets: Volker Land (partner, Hamburg), Laurenz Wieneke (partner, Frankfurt); Ingo Theusinger (partner, Düsseldorf)

Banking & Finance: Nikolai Warneke (partner), Jonas Strubel (associate, both Frankfurt)

Employment & Pensions: Patrick Mückl (partner, Düsseldorf)

Tax: Martin Haisch (partner), Benedikt Rippert (senior associate, both Frankfurt)

Advisors to KfW: Hengeler Mueller

Restructuring officer: Stefan Denkhaus (BRL)