EV maker Arrival SA (OTC:ARVLF) has appointed EY as administrator for its two UK subsidiaries and is mulling over selling its business and assets, after failing to acquire necessary rescue funds.
What Happened: The company said that Simon Edel, Alan Hudson, and Sam Woodward, from EY-Parthenon's Turnaround and Restructuring Strategy team, would be joint administrators for its two units Arrival UK Ltd and Arrival Automotive UK Limited. The joint administrators are tasked with investigating the possibilities of selling the business and assets of the two units including their electric vehicle platform, software, intellectual property, and R&D assets.
The company's remaining subsidiaries will carry on their operations as normal.
Last month, Sky News reported that Arrival is in discussions with EY to step in as administrator should the company fail to acquire necessary rescue funds.
Why It Matters: Arrival ended the first half of 2023 with approximately $43 million of cash and cash equivalents. Loss for the half year was $155.7 million, compared to a loss of $100 million in the corresponding half of 2022.
The company's stock was delisted from the Nasdaq on Jan. 30 owing to a delay in filing its interim financial statements on form 6-k.
Photo courtesy of Arrival.
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