Tritium files for insolvency and is on the lookout for a buyer

The company writes in a notification to the US Securities and Exchange Commission that Tritium DCFC and three of its Australian subsidiaries are “insolvent or likely to become insolvent”. Although Tritium was founded in Australia and still has its headquarters there, it has been listed on the Nasdaq in the USA since the beginning of 2022 via a SPAC merger – hence the so-called “6K filing” with the US Securities and Exchange Commission (SEC).

After the directors themselves declared their (probable) insolvency, the company appointed three managers from management consultants KPMG as administrators. In addition, Tritium’s lenders have themselves appointed administrators from the law firm McGrathNicol Restructuring. Together, they are now taking control of Tritium’s assets and looking for buyers.

“Our immediate focus is to stabilise operations and work closely with Tritium’s employees, customers and suppliers as we attempt to secure the best possible outcome for all parties,” said Shaun Fraser, partner at McGrathNicol Restructuring, in a statement quoted by Australian portal The Driven. And KPMG manager Peter Gothard stated that the administrators would work with the insolvency practitioners “to secure the assets and stabilise the business operations of Tritium to maximise the outcome for all concerned parties”.

The fact that Tritium’s financial situation was strained had already become apparent in 2023. In November, it was decided that the company would close its Australian plant in Brisbane in order to produce exclusively in the USA in future – the Australian plant was apparently not profitable to operate and the government did not want to continue subsidising the factory. Tritium had previously failed in its attempt to obtain an investment of the equivalent of 54 million euros for the plant, as a result of which the plant was closed in favour of the factory in Tennessee. Even then, CEO Jane Hunter stated that the “strategic reorganisation of our business” was necessary “to increase both profitability and shareholder value”. To clarify the situation: When it went public in early 2022, Tritium was valued at almost two billion US dollars. Since then, however, the share price has fallen so sharply that the company has barely been able to fulfil the guidelines for a listing on the Nasdaq. Before filing for bankruptcy, Tritium was worth less than four million US dollars. This was despite large orders from companies such as Ionity, BP and Shell.

However, even after the closure of the factory in Brisbane, the situation has not stabilised sufficiently, if at all. As insolvency administrator Shaun Fraser has now stated, “a sale process for the business and assets of Tritium was already underway” prior to the appointment of the law firm. He did not give any details, but this process was probably initiated by Tritium’s management in order to bring investors on board. Fraser now wants to build on this: “We will urgently re-engage with interested parties and the wider market to find a long-term capital and/or ownership solution for Tritium.”

As The Driven writes, an initial meeting of creditors must be held by 26 April. This could also provide initial information on how to proceed with the existing jobs and how to ensure the operation and maintenance of Tritium charging points.

thedriven.io, tritiumcharging.com (6K-Filing als PDF)