Advisers to EV van maker Arrival, which lists on the NYSE, have told prospective bidders that the company’s financing requirements mean a deal would need to be completed imminently.
Alvarez & Marsal was appointed during the summer to advise Arrival’s board on a range of restructuring options, including contingency planning for administration, Sky News reports.
It is now seeking offers for Arrival’s business and assets, either in whole or in part, according to industry sources.
It is said to require at least $500 million of additional funding to get it to break-even, making a rescue bid for the whole business unlikely.
The London-based business went public in March 2021 through a combination with CIIG Merger, set up by Peter Cuneo, the former Marvel chief executive.
Arrival was backed by blue-chip global investors including BlackRock, which injected nearly $120m into the business in 2020.
Hyundai and Kia, the Korean carmakers, and the delivery service UPS were also early backers of the company.
Arrival also struck a second SPAC deal, with Kensington Capital Acquisition V, which would have injected hundreds of millions of dollars more into the company.
The agreement between the two parties was terminated in July, less than three months after it was announced. Read more.
