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 still has an outstanding final payment of nearly £8.6 million, according to administrators at EY.

A report from EY to creditors stated that the sale to the buyer had not been completed due to the unpaid deferred consideration. The administrators have had to spend more time than expected on efforts to preserve and recover the outstanding amount.

According to the report, the buyer had purchased Britishvolt's business and assets for £8.57 million, with the payment to be made in multiple installments. However, the final installment remains unpaid and overdue, resulting in 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 the start-up. Hana Technology from South Korea, another supplier to Britishvolt, is owed £22.3 million, while mining giant investor Glencore is owed £20 million.

The business also owes around £3 million to the taxman, mainly 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 the sale of three staff vehicles.

Employees are owed approximately £279,000, according to the administrators at EY.

FutureCar Staff