The sale of electric vehicle firm Arrival has encountered delays due to ongoing negotiations.
- Administrators are seeking a 12-month extension to accommodate the sales process.
- Arrival UK collapsed with over £1bn in unpaid liabilities.
- Non-core assets worth £7.4m have been sold by the administrators.
- Despite challenges, a core team of employees remains in place.
The ongoing sale process of the electric vehicle firm Arrival is encountering delays as prospective buyers continue to negotiate the transaction terms with administrators. The administrators, namely EY, have moved to a due diligence phase after receiving non-binding offers. This step has prompted the need for a 12-month extension to the sales process to allow comprehensive negotiations.
The firm, having entered administration earlier this year, has revealed considerable liabilities exceeding £1bn, encompassing unpaid taxes, wages, supplier debts, and shareholder dues. Prominent creditors include AWS and Google Cloud, as well as other suppliers such as coffee provider Grind.
Efforts to recuperate funds have led to the sale of £7.4m in non-core assets and the recovery of £2.8m owed to the company. Such measures highlight the uphill battle faced by administrators to mitigate the financial fallout.
Despite the firm’s financial distress, administrative efforts have ensured that a significant portion of the workforce remains active. Of the initial 133 employees at the time of administration, 90 have been retained, indicating continued operational capabilities.
Founded in 2015, Arrival aspired to transform the EV landscape with its micro-factories but faced persistent financial hurdles post-IPO in 2021. The insolvency proceedings have not been limited to the UK, affecting its US, German, and Spanish branches as well.
The extended sales process underscores the complexities involved in negotiating a viable outcome for all stakeholders.
