According to information obtained by News, talks with Reaction Engines anchoring a recapitalization of the firm have started to stall with the UAE’s Strategic Development Fund, the investment arm of the UAE’s Tawazun Council.
Several sources with knowledge of the situation said the situation was fluid and might be rectified, but it was unclear why the talks with SDF appeared to break down on Sunday.
Additionally, they stated that Reaction Engines was actively pursuing a number of other investment opportunities.
However, there is not much time left to negotiate a financial plan that would keep the business from going into administration.
According to reports, Reaction Engines needs millions of pounds in finance support in a matter of days. The company has also reportedly urged significant partners Rolls-Royce Holdings and BAE Systems to agree to more flexible terms.
According to the previous talks, SDF would have been the largest investor in Reaction Engines, a company that has created cooling technology to enable airplanes to reach Mach 25, or 19,000 miles per hour, outside of Earth’s atmosphere.
