Britishvolt: Northumberland Gigafactory business sold for £8.5m, administrators say
Britishvolt, which had planned to open a battery gigafactory in Northumberland, was bought out of administration for just £8.5 million according to new documents.
The report, from administrators EY, is the latest stage in sorting out of the affairs of the company, which entered administration on 17 January.
Australian-based startup Recharge Industries, which is owned by US company Scale Facilitation, completed its purchase of Britishvolt on 27 February.
Administrators say Recharge will also need to settle a debt of £9.7m with Katch Fund Solutions in order to complete its acquisition of Britishvolt's site in Cambois, Northumberland, which is widely regarded as one of the best locations in Europe for building a battery factory.
That means Recharge's total investment comes to less that 10% of the £200m raised by Britishvolt in equity and loans in just over three years.
Administrators have confirmed the government's offer of a £100m grant to help develop the site was terminated when Britishvolt entered administration, meaning Recharge will need to negotiate a fresh deal with ministers if they want to seek taxpayer support.
The report also shows:
The company had just £1.8m in the bank when it entered administration.
It raised less than £100m in equity during 2022, out of a target of £800m.
More than 200 staff were made redundant when the company folded, reducing its headcount from 233 to 31.
Britishvolt ran a fleet of 83 motor vehicles, including three it owned outright.
The business owes around £5.4m in tax.
While administrators expect money owed to HMRC and former employees to be paid in full, or nearly in full, it warns other creditors that they can expect payouts of less than one penny in the pound.
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