A Scottish zero-emission vehicles company backed by the billionaire Issa brothers has entered administration.
Opus Restructuring has been appointed to oversee the process at Glasgow-based Hydrogen Vehicle Systems (HVS) after the business faced a winding up petition earlier this month.
It also faced a winding up petition in October 2024.
The firm has been backed by the billionaire Issa brothers’ EG Group since 2021 following an initial £5m investment.
That came before a further £25m investment in September 2022.
HVS was founded in 2017 and led by executive chairman Jawad Khursheed.
The investment in HVS was provided by Beehive Equity, a wholly owned subsidiary of EG Group.
While Hydrogen Vehicle Systems Limited has entered administration, H2 Vehicle Systems Limited – which is now listed on the company’s website as its operating firm – has not.
That business was incorporated in April this year.
Both Hydrogen Vehicle Systems Limited and H2 Vehicle Systems Limited’s parent company is Beehive Equity.
According to its latest set of accounts, Hydrogen Vehicle Systems Limited’s shareholder funds went from £2.8m to £287,668 in the year to 31 October, 2024.
When contacted by City AM, Opus Restructuring only confirmed that it had been appointed as administrator to HVS.
HVS itself did not respond to a request for comment while EG Group has also contacted for comment.
Billionaire brothers suffer $33m hit
The entry into administration comes after the FT reported in March that EG Group had taken a $33m (£24.7m) hit on its investment in the Scottish hydrogen vehicle start-up.
At the time, HVS was described as being on the brink of insolvency.
In an open letter to investors issued in February, HVS’s chief scientific officer David Telford said the company needed to raise money as it faced being wound up “in four weeks”.
He added that £1m would “buy time with creditors”.
HSV is 31 per cent owned by founder Abdul Waheed while the same amount of shares are held by EG Group and executive chairman Jawad Khursheed.
As well as the £30m investment from EG Group, the company is also backed by £25m in UK Government funding – including an APC grant – and investment from Qatar Group Excelledia Ventures