Britishvolt's rescuer delays final payment

author: FutureCar Staff    

The Australian company that had agreed to purchase Britishvolt, a failed battery factory start-up, has failed to meet the deadline for payment. Recharge Industries has not paid the final installment of nearly £8.6 million, which was due on April 5, according to filings from administrators at EY.

In a report to creditors, EY stated, "The sale to the buyer had not completed as the final amount of deferred consideration was due to be paid on 5 April 2023. As a result, the joint administrators have had to spend more time than anticipated in taking steps to preserve and recover this amount."

The report also noted that the buyer had purchased the business and assets of Britishvolt for £8.57 million, with the amount payable in multiple installments. However, the final installment remains unpaid and overdue, leading to the buyer being in default of the business sale agreement.

When Britishvolt went out of business, it was estimated to owe between £130 million and £160 million. The largest debt, approximately £26.7 million, is owed to DC Energy, a company that was supposed to supply electrode manufacturing gear to Britishvolt. Hana Technology from South Korea, which also had an agreement to supply Britishvolt, is owed £22.3 million, while mining giant Glencore is owed £20 million.

The business also owes around £3 million to the taxman, primarily in income tax and VAT. The administrators have managed to raise approximately £74,000 from the sale of Britishvolt's IT equipment and an additional £77,000 from selling three staff vehicles. Employees are owed roughly £279,000, according to EY.

FutureCar Staff