Administrator says scale of money owed to creditors could top published figure

Several firms including NG Bailey, Gardiner & Theobald and Hoare Lea have been left out of pocket by the collapse of car battery manufacturer Britishvolt earlier this year.

A report by administrator EY says that the total amount owed to creditors so far is 拢94m 鈥� with the figure likely to be much higher.

EY, itself owed 拢4m, 鈥渆stimated that total non-preferential creditor claims may be in the region of 拢130m to 拢160m鈥� and added: 鈥淚t is possible that this figure may prove to be materially higher or lower.鈥� According to its report, trade creditors are owed just over 拢94m as of 8 March.

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Britishvolt had planned a 拢300m factory at this site in Cambois, Northumberland. ISG stopped working on the scheme last summer as funding began to run out

The report says Bailey, which owned more than 535,000 shares in Britishvolt, and sister firm, the Freedom Group of Companies, are owed just over 拢2m between them while G&T is missing close to 拢336,000.

Atkins is owed just over 拢41,000, landscape architect LDA Design a further 拢33,500 while Hoare Lea, bought in 2021 by US firm Tetra Tech, is owed 拢20,500. Avison Young is also missing 拢10,500.

Britishvolt sank into administration in January having racked up 拢154m in losses since being set up at the end of 2019. More than half this figure, 拢80m, was accumulated during the 11 months to November 2022, EY added.

The report said Britishvolt鈥檚 management had planned to raise 拢800m of equity in 2022, with a further 拢1.7bn to follow in subsequent years to fund its capital expenditure requirements.

But the firm ran into several liquidity problems and last October asked EY 鈥渢o undertake more intensive contingency planning for a potential imminent administration鈥�. Last summer ISG, which is not listed as a creditor, stopped work on Britishvolt鈥檚 planned 拢300m car bettery plant in Northumberland as funding dried up.

By the time EY was appointed in the middle of January, Britishvolt had just 拢1.8m of liquidity.

Britishvolt was bought out of administration at the end of last month by Recharge, an Australian battery firm start-up owned and run by New York-based investment fund Scale Facilitation.

The report said that Britishvolt鈥檚 233 employees were owed just under 拢5.2m with 拢5m of this figure in unsecured claims with preferential claims totalling 拢189,500.

The report added: 鈥淲e would note that the majority of the retained employees have transferred to [Recharge] under TUPE and, therefore, we would expect this specific claim to be materially lower than stated.鈥�

Earlier this month, listed plant hire firm Ashtead, which trades as Sunbelt, said in its third quarter results that it had written off a 拢35m investment in Britishvolt, comprised of 拢31m in equity and a 拢4m convertible loan. Sunbelt owned 997,340 shares in the company, the EY report said.