(Reuters) – British electric-vehicle startup Arrival said on Tuesday it missed the Dec. 1 deadline to make an interest payment on its convertible debt due 2026 as it battles a cash crunch.

Arrival did not make the semiannual interest payment under the convertible senior notes even during the 30-day grace period, according to its filing.

The company said the miss constituted “an event of default” under the debt and that other holders of the notes may accelerate all amounts due thereunder.

The size of the notes offering is about $275 million, the company had said in 2021.

Arrival had said in October it would slash its global workforce by about 25% as part of its efforts to cut costs as high interest rates and increasing costs pressure EV firms.

The company also entered into a financing agreement of up to $50 million in November 2023 to help improve its working capital while it explores a possible sale or strategic alternatives.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar)

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