Administrators of the collapsed UK electric vehicle company Arrival believe a sale of the company and the repayment of creditors is “possible”.
The UK subsidiary of the Luxembourg-based EV maker entered administration in February after failing to secure a rescue deal.
Administrators from EY have concluded that the primary objective of rescuing the business “would not be achievable” due to the “scale of the company’s liabilities and the requirement for significant funding”.
The administrators did, however, say a “sale of the business…may be possible” and this avenue was being “fully explored”.
Financial documents revealed last month that Arrival UK collapsed with a £1.2bn deficit on its books, stemming from unpaid tax, wages, suppliers and shareholder capital.
More than 100 interested parties have entered negotiations for the purchase of Arrival and its assets, EY said, including those that expressed interest during the previous sales process prior to it entering administration.
The deadline to express interest passed on 15 February and since then, negotiations have been ongoing with the hope of securing a sale in “the coming weeks”.
A loan of £10.6m has been provided to Arrival’s UK business by “secured lenders” to finance the process of securing a merger or acquisition.
At the time of administration, 37 staff were laid off, with 133 being retained during the process.
The administrators said of those retained, 11 have since left the company, with five staff serving notice periods at the time the administration began and a further six resigning later.
Founded in 2015, Arrival billed itself as an efficient EV manufacturer, with plans to streamline production through robotically manned micro-factories.
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