The ongoing sale of the collapsed EV group Arrival is facing significant delays as negotiations continue with potential buyers.
- Administrators from EY have extended the sales timeline to accommodate ongoing due diligence from interested parties.
- Prospective buyers are actively involved in management meetings and asset inspections to understand the full value of Arrival’s offerings.
- Arrival UK was revealed to owe over £1 billion, impacting several major creditors including AWS and Google Cloud.
- To date, administrators have only managed to recover a small fraction of the debt through asset sales.
The sale of the collapsed electric vehicle company, Arrival, has encountered delays as discussions with potential purchasers prolong. Administrators from EY, who oversee the UK’s segment of the previously Nasdaq-listed entity, reported ongoing due diligence efforts after receiving several non-binding offers. The timeline for concluding the sales process has been extended to ensure adequate time for negotiations regarding transaction terms.
In their report, the administrators highlighted their request for a 12-month extension to fulfil sales process requirements. This extension reflects the complexity and scale of negotiations currently underway. Prospective buyers are engaging in a series of meetings, site visits, and asset evaluations to gain a comprehensive understanding of Arrival’s business assets and potential value.
The financial outlook of Arrival worsened when, in March, it was disclosed that the company faced liabilities exceeding £1 billion. These obligations span unpaid taxes, employee wages, trade creditors, and shareholder debts. Key creditors identified include prominent organisations such as AWS, Google Cloud, and Grind, a coffee provider. Despite these substantial debts, administrators have only realised £7.4 million from non-core asset sales and reclaimed £2.8 million in outstanding debts.
Founded in 2015 with the ambition to innovate EV manufacturing through robotically-operated micro-factories, Arrival’s financial struggles intensified post its 2021 initial public offering. The firm’s financial instability culminated in the appointment of administrators in February 2024. Subsequently, Arrival’s entities in the United States, Germany, and Spain have similarly initiated insolvency processes.
The administrative report also noted a reduction in employee numbers, with only 90 of the original 133 staff remaining post-administration takeover. This reduction further reflects the ongoing challenges facing the company as it manoeuvres through its financial restructuring process.
As negotiations continue, the future of Arrival hinges on successful buyer agreements within the newly extended timeline.
