Arrival Trucks (ARVL) and zombie companies

hallmark

A British electric van maker once valued at $13bn (£10bn) has gone into administration after burning through $1.5bn without having sold a vehicle. Arrival’s Nasdaq flotation in 2021 was the biggest ever for a British company but shares have fallen by 99.98pc as it became clear that the company was unable to service its debts.

I thought this was an interesting article for various reasons.  Even by the standards of tech companies, going from a £10 billion valuation to bust in that short a timeframe is a little surprising.  But also, it's a little crazy/scary that these pretty much unknown startups have such high valuations.  And that they cause such a small ripple in the newsflow when they go bust.

IIUC there's something like a trillion of debt taken out at close to zero rates due to be rolled over in 2024.  I suspect we're going to see a tidal wave of companies like this going bust.