The battery giant Northvolt this week began laying off employees after declaring itself bankrupt last week. What is the process in Sweden when a company goes bankrupt?
Company files for bankruptcy
In Sweden, the bankruptcy process begins when either the company itself or one of its creditors applies to the local court where the company is based for it to be declared bankrupt.
In the case of Northvolt, the company applied to the Stockholm district court even for subsidiaries based in Skellefteå and Västerås.
It is the court that makes the final decision. It does this by checking that the company is, indeed, insolvent (på obestånd) i.e., that it is incapable…
