NAIROBI (dpa-AFX) - Federal Economics Minister Robert Habeck has rejected speculation about a possible 600 million loss for the federal government and the state of Schleswig-Holstein due to Northvolt's financial problems. The Vice-Chancellor said during his visit to Nairobi that the headlines he had read were "simply not appropriate".

The financially troubled Swedish battery manufacturer Northvolt has applied for creditor protection in the USA. The company filed for restructuring proceedings under Chapter 11 of the US Bankruptcy Code. According to the company, its battery plant, which is being built in Heide, Schleswig-Holstein, is not affected.

The financial problems had triggered speculation that the crisis at Northvolt could prove costly for the federal government and the state of Schleswig-Holstein. This is because the ailing company has received around 600 million euros from the state-owned development bank KfW, for which the federal and state governments are each providing half of the guarantee.

Green politician Habeck said in Nairobi that Northvolt is now undergoing a restructuring process. "Many other companies have already done this successfully." This will hopefully make Northvolt more attractive to new investors. "And if that happens, i.e. the company repositions itself, then the loans it has been granted will also be repaid. And I am not without hope that this is exactly what will happen."

Technical problems had led to the financial problems at Northvolt, said the Minister of Economic Affairs. "But they are solvable." Other companies had also "returned strongly to the market" after going through Chapter 11 proceedings./sk/DP/ngu