Britishvolt goes into administration
The UK-based car battery manufacturer has announced it has gone into administration.
On 17 January 2023, Britishvolt entered into administration and Dan Christopher Hurd, Joanne Honor Robinson and Alan Michael Hudson, partners of EY Parthenon, were appointed as Joint Administrators.
The company's goal was to make low-carbon battery cells in the UK, mostly to power electric vehicles.
No other entity in the BritishVolt group is in Administration.
Michael Lynch, partner at city law firm DMH Stallard and insolvency expert, comments, 'This news is no surprise to any in the sector that outside pressures, such as access to global resources, Brexit and inflation has put undue financial pressures on such a business and, by proxy, their board.'
Lynch says that the joint administrators will be looking to either rescue the company, achieve a better result for the company's creditors than winding up, or realising its assets to distribute to one or more of secured or preferential creditors.
'Recent legislation, notably the National Security and Investment Act 2021, may come into play. As widely reported, Britishvolt was not a viable purchase proposition in the open market, likely as a result of its debt position.'