According to information obtained by News, Reaction Engines has appointed PricewaterhouseCoopers (PwC), an accounting company, to serve as administrator in the event that its attempts to obtain fresh funds prove fruitless.
It is believed that the company is in-depth discussions over a capital infusion with one of its current shareholders, the Strategic Development Fund (SDF), which is supported by the UAE state.
It is also said that several additional investors in Reaction Engines are debating whether to contribute further funds to the business, which has already received £150 million and is expected to need tens of millions of pounds more in the coming weeks.
On Saturday, a source declared, “They are running out of time.”
If the finance talks fall through, PwC is reportedly on standby to supervise Reaction Engines’ insolvency.
FTSE-100 defence and aerospace businesses BAE Systems and Rolls-Royce are among the company’s current investors.
It was uncertain if they would be prepared to make additional financial commitments to guarantee Reaction Engines’ existence.
Former minister of defence Philip Dunne is the chairman of Reaction Engines, which was founded in 1989.
