McLaren financial problems: F1 team facing insolvency by 17 July 2020
McLaren F1 team is facing massive financial problems and that could lead to insolvency as early as 17 July 2020, as per Forbes.
McLaren has decided to take the owners of its bonds to court, seeking a High Court declaration that would permitted the Group to use its Woking headquarters and historic car collection as collateral for a new loan.
Earlier, it was reported that the McLaren Group could sell a stake in its Formula 1 team to help cover costs.
McLaren’s financial troubles took them to the British courts, as they sought help. They are in dire need of funds, could turn to its land assets and historic cars for it.
‘The judge will need to issue a declaration in favor of McLaren in just 17 days. This is to ensure it can get the deal over the finish line.
The Real Reason McLaren Is Considering Selling A Stake In Its F1 Team via @forbes https://t.co/WJhGxCD6oo
— Matt Archuleta (@indy44) June 23, 2020
‘The filings reveal that “the Group needs to obtain declaratory relief in advance of 17 July 2020. Due to the period of time required to sign the contractual documentation and arrange for the relevant funds to be paid, declaratory relief would in fact need to be granted at least five business days before the funds are required. In other words, declaratory relief is required by no later than 10 July 2020.”‘
Also read: Formula One to introduce 6 new graphics this season
McLaren is facing massive financial loses as the revenue fell from $217.7 million to $136.2 million. They have sold a third of its road cars in the first quarter of 2020 compared to 2019 Q1.
McLaren was forced to shut down because of the negative economic impact of Covid-19. It remains to be seen if they can stay afloat, and more importantly, compete in Formula One in the immediate future.
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