Britishvolt's rescuer yet to complete payment, claim administrators

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【Summary】Recharge Industries, the Australian company set to acquire Britishvolt, has failed to make the final payment of £8.6m for the battery factory start-up. The administrators at EY have reported that the sale has not been completed due to the outstanding amount. Britishvolt, which owed an estimated £130m to £160m, had debts to various parties, including DC Energy, Hana Technology, Glencore, and the taxman.

FutureCar Staff Aug 14, 2023 10:00 AM PT

Britishvolt's rescuer yet to complete payment, claim administrators

The Australian company that had agreed to acquire Britishvolt, a failed battery factory start-up, has failed to meet the payment deadline for the purchase. Recharge Industries, the buyer, still has an outstanding final payment of nearly £8.6 million, according to filings from the administrators at EY.

A recent report from EY to creditors stated, "The sale to the buyer had not been completed as the final amount of deferred consideration was due on April 5, 2023." The report also highlighted that this unpaid amount has required the administrators to spend more time than anticipated in preserving and recovering the funds.

The report further explained, "The buyer purchased the company's business and assets for £8.57 million, payable 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, around £26.7 million, is owed to DC Energy, a company that was supposed to supply electrode manufacturing gear worth approximately £86 million to the British start-up. South Korea's Hana Technology, another supplier to Britishvolt, is owed £22.3 million, while mining giant investor Glencore is owed £20 million.

In addition, the business owes the taxman approximately £3 million, 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 selling three staff vehicles. Employees are owed around £279,000, according to the administrators at EY.