Britishvolt files to appoint administrators

After failing to secure a buyer, would-be EV battery manufacturer Britishvolt has filed to appoint administrators
Britishvolt files to appoint administrators

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 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.”

  1. Would you like to write the first comment?

    Would you like to write the first comment?

    Login to post comments
Follow the developments in the technology world. What would you like us to deliver to you?
Your subscription registration has been successfully created.