Britishvolt's rescuer fails to complete payment

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【Summary】Australian company Recharge Industries, which had planned to buy Britishvolt, has missed the deadline to make the final payment of £8.6m for the failed battery factory start-up. Administrators at EY reported that the sale has not been completed, and they have spent additional time trying to recover the outstanding amount. Britishvolt, which owed between £130m and £160m, had significant debts to suppliers, including £26.7m to DC Energy, £22.3m to Hana Technology, and £20m to Glencore.

FutureCar Staff Aug 15, 2023 10:14 AM PT

Britishvolt's rescuer fails to complete payment

The Australian company that had previously announced its intention to acquire Britishvolt, a failed battery factory start-up, has failed to meet the deadline to pay for the acquisition. Recharge Industries, the Australian company, still has an outstanding final payment of nearly £8.6 million, which was due on April 5. This information was disclosed in filings from the administrators at EY.

A report from EY to creditors stated that "the sale to the buyer had not been completed as the final amount of deferred consideration was due to be paid on April 5, 2023." The report further mentioned that the outstanding payment has resulted in the joint administrators having to spend more time than anticipated in preserving and recovering the amount.

According to the same report, 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, 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, amounting to 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, 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 in income tax and VAT to the tax authorities.

The administrators at EY have managed to raise approximately £74,000 by selling Britishvolt's IT equipment and an additional £77,000 from the sale of three vehicles used by staff. However, employees are still owed around £279,000, as confirmed by the administrators.