Brit BEV Maker Arrival in 'Insolvency Talks'

British electric van company Arrival is the latest battery-electric-vehicle maker to hit the financial skids as it negotiates with advisers to handle its insolvency.

U.K. broadcaster Sky News reports the long-troubled light-commercial-vehicle maker is in talks with accounting firm Ernst & Young about acting as administrator if it cannot secure new rescue funding.

It had joined the rush into the special purpose acquisition company (SPAC) boom during the pandemic which capitalized on strong demand from investors. Since then, rising interest rates, inflation and supply constraints have hampered production plans and gobbled up investor capital.

Several BEV start-ups, including Lordstown Motors, Proterra and Sweden's Volta Trucks, have been forced to declare bankruptcy as investors got cold feet over the technology, especially with consumer adoption not matching industry expectations.

Shares of Arrival, which was earlier backed by Hyundai Motor Group and United Parcel Service, fell 15% after Sky’s business program report. The company also received a notice of delisting from Nasdaq for not complying with listing rules because of a delay in filing its interim financial statements and failure to hold an annual shareholder meeting.