The sale of the collapsed EV company, Arrival, has experienced delays amidst ongoing negotiations. As potential buyers engage with administrators, the process has reached a due diligence phase. Despite initial offers, the timeline is extended for transaction discussions. Founded in 2015, Arrival aimed for innovation but faced financial difficulties after its IPO. Efforts continue to manage the insolvency situation.
The process to sell the bankrupt electric vehicle manufacturer, Arrival, has hit a delay as discussions between potential buyers and the administrators persist. With the administrators asking for a 12-month extension, it demonstrates the complexity and importance of these negotiations for all parties involved. This extension is crucial to ensure all transaction terms are thoroughly reviewed and agreed upon.
The administrators, managed by EY, have progressed past the receipt of non-binding offers into a critical due diligence stage. This phase is integral to evaluate the feasibility and reliability of potential offers, enabling the administrators to manage the sale responsibly.
Founded in 2015, Arrival set out to transform the electric vehicle industry through its innovative robotic micro-factories. However, following its initial public offering in 2021, the company faced continuous financial setbacks, leading to administration in February 2024. The UK branch’s insolvency has also impacted its US, German, and Spanish subsidiaries, all of which are undergoing their respective insolvency proceedings.
In the wake of its financial troubles, it was disclosed in March that Arrival UK accrued debts exceeding £1 billion, which include unpaid taxes, wages, and other liabilities to suppliers and shareholders. Notable creditors include AWS, Google Cloud, and the coffee company Grind. These financial challenges underscore the need for a meticulously managed sale process.
Despite these challenges, the administrators have successfully liquidated £7.4 million worth of non-core assets and reclaimed £2.8 million in company debts. Out of 133 employees who were retained during the administrators’ appointment, 90 remain, reflecting ongoing efforts to preserve value and manage costs during this turbulent period.
The sale process, although delayed, continues as administrators work to resolve the company’s financial troubles.
