Britishvolt buyer defaults

Author: EIS Release Date: Aug 15, 2023

Britishvolt buyer Recharge Industries of Australia has failed to make the final  payment on its proposal   to buy the failed company out of administration  and has consequently defaulted on the deal, say administrators EY.

 

 

 

“The sale to the buyer had not completed as the final amount of deferred consideration was due to be paid on 5 April 2023,” EY told creditors last week, “ the buyer purchased the company’s business and assets for £8.57m. This amount was payable in a number of instalments. The final instalment remains unpaid and overdue. As a result, the buyer is in default of the business sale agreement.”

 

Recharge is owned by a New York-based investment fund called Scale Facilitation whose offices were raided by police in June over an alleged tax fraud.

 

 

Yesterday, a spokeswoman for Recharge Investments told the BBC that the timing of the final instalment to be paid to EY depended on a “funding facility, which when closed will also cover the cost of the land acquisition” and provide extra cash for the project. She added that it expects to close the deal in August.

 

 

Britishvolt collapsed  owing between £130m and £160m,