Collapsed UK firm Reaction Engines had a total deficiency of over £160 million ($216 million) when it fell into administration last month, including now-worthless shareholdings of more than £150 million.
Reaction was placed into administration on 31 October following a failure to secure additional funding, with Sarah O’Toole, Peter Dickens and Edward Williams of accountancy firm PwC appointed to handle the insolvency.
Documents filed at Companies House as part of the administration on 27 November show Reaction’s total deficiency stood at £162 million.
Most of that figure is represented by the value of called-up share capital totaling £156 million.
Major shareholders include BAE Systems (£25.1 million), Boeing (£5.5 million), Rolls-Royce (£24 million), UAE investment fund Tawazun (£39 million), and asset manager Schroders (£10 million).
Those holdings – wiped out by the administration – were acquired over the last decade as Reaction sought funding to bring its developmental hypersonic engine technology to market.
BAE Systems backed Reaction in 2015 with a £20.6 million investment, while Boeing and Rolls-Royce came on board as part of a £26.5 million raise in 2018. Tawazun, meanwhile, lead a 2023 funding round that raised a total of £40 million.
Reaction also owes £5.6 million to trade creditors, including £1 million to Rolls-Royce, the documents disclose.
While the company’s assets have a book value of £13.9 million, only £3.35 million is expected to be realised, including £2.3 million in cash.
Following its appointment, PwC began winding down the company, immediately laying off 173 of 208 employees.
