Britishvolt's rescuer fails to complete payment

author: FutureCar Staff    

An Australian company that had previously announced its intention to purchase Britishvolt, a failed battery factory start-up, has failed to meet the deadline for payment. Recharge Industries, the company in question, has not yet paid the final instalment of the nearly £8.6m total that was due on April 5, according to filings from administrators at EY.

A report from EY to creditors stated that the sale to the buyer had not been completed because the final amount of deferred consideration was not paid on time. This outstanding amount has required the joint administrators to spend more time than anticipated in preserving and recovering the funds.

The report further explained that the buyer had purchased the business and assets of Britishvolt for £8.57 million, payable in multiple instalments. However, the final instalment 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 £130m and £160m. The largest debt of approximately £26.7m is owed to DC Energy, a company that was supposed to supply around £86m worth of electrode manufacturing equipment to Britishvolt. Hana Technology from South Korea is owed £22.3m, and mining investor Glencore is owed £20m. Additionally, the business owes around £3m to the taxman, primarily in income tax and VAT.

The administrators have managed to raise approximately £74,000 by selling Britishvolt's IT equipment and an additional £77,000 by selling three vehicles used by staff. Employees are owed approximately £279,000, according to the administrators at EY.

FutureCar Staff