It's not been a few easy days for London-based would-be EV battery maker Britishvolt as reports are now arriving that after a mad dash to secure a last-minute buyer to hold off a collapse, the company is now filing to appoint administrators, a process that puts in place a statutory moratorium and allows a company some ‘breathing space’ that frees a company from creditor enforcement actions, while financial restructuring plans are prepared to rescue the company as a going concern where possible.
The move follows a statement released in November following reports that the company was faltering, in which it was noted that workers would take a 'substantial' pay reduction, with senior management foregoing a paycheque at all that month, as the company made moves to obtain a 'more secure funding position', namely via 'several more international investors'.
Britishvolt's troubles stem from a failure to obtain a £100 million from the UK government that was promised in January of last year, and that Tech.eu covered the announcement of in late July. The multi-million-pound deal was part of the government’s Automotive Transformation Fund (ATF). The £3.8 billion plant, which is being built in Cambois on the site of the former Blyth Power Station, was/is also to receive backing from investors Tritax and Abrdn, but this capital was contingent upon the release of the £100 million as promised by the ATF.
At the time, now-former UK business secretary Kwasi Kwarteng, architect of the disastrous mini-budget commented: “We have now provided Britishvolt with a final grant offer through the Automotive Transformation Fund. The Blyth gigafactory will turbocharge our plans to embed a globally competitive electric vehicle supply chain in the U.K. and it is fantastic to see how the project is progressing.”