According to information obtained by Sky News, British hypersonic engine developer Reaction Engines has gone bankrupt following weeks of unsuccessful rescue deal talks with potential backers. The company, taken over by PricewaterhouseCoopers (PwC) administrators, laid off 173 of its 208 employees on Thursday morning.
The bankruptcy of Reaction Engines, which developed advanced cooling technologies for engines, may also pose challenges for the four Formula 1 teams using Mercedes-Benz engines. Known for its SABRE engines and innovative technologies in this field, the company’s efforts to secure an additional £20 million in financing to avoid bankruptcy failed, despite talks with the BAE Strategic Development Fund (SDF) and other investors. It was reported that discussions stalled earlier this month due to the reluctance of strategic shareholders BAE Systems and Rolls-Royce Holdings to provide sufficient capital.
Sarah O’Toole, joint administrator at PwC, stated, “It is very disappointing that a company with 35 years of pioneering work in aerospace innovation could not secure the necessary financing to continue operations,” adding that the necessary support would be provided to the company’s employees.
Founded in 1989, Reaction Engines recently reported over 400% growth in commercial revenues in recent years. The company was known for developing cooling technology for aircraft capable of reaching Mach 25 (30,000 km/h) and had raised a total of £150 million in investments.
In a statement from PwC, it was noted, “The company was primarily funded through grants and equity investments due to its R&D focus, but unfortunately these efforts have ended in failure.” Remaining employees will be temporarily retained at the Oxfordshire headquarters to “complete some existing orders and assist with the winding down of operations.”
© AeroHaber.com
Aviation News and Defense Industry news published on our website cannot be used without proper attribution.
Note: You can read all aviation news published on our English site in Turkish at www.airportgundem.com
