Report: McLaren working hard to avoid bankruptcy
Jun.24 - McLaren is worried it may soon run out of money.
Although the famous British team has signed up Daniel Ricciardo for 2021, McLaren has now said in a filing at London's High Court that it needs a ruling "to ensure that the Group can continue as a going concern into 2021".
The company has already laid off a quarter of its workforce, and now it is suing to have the security in its factory and historic F1 car collection released in order to raise over $300 million in loans.
The High Court papers say a ruling in McLaren's favour will work by "preventing a cash flow crisis and a value destructive insolvency".
Writing in Forbes, F1 business journalist Christian Sylt said the crisis has emerged because McLaren was unable to sell enough sports cars during the pandemic.
Sylt said McLaren needs the funding by 10 July, which is between the forthcoming first and second 'ghost' races in Austria.
The defendant's lawyer reportedly told McLaren earlier in June that the lawsuit will not be successful because it "will not be concluded before the Group runs out of cash".
And if the cash does run out, the lawyer predicted that McLaren "will then have no realistic prospect of avoiding an insolvent liquidation".
A trial will begin in London's High Court on 2 July.
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Putting all one's eggs in the superluxury basket. And biffing money at only-vaguely-related brand promotion items . Sad, and looking precarious.
Ouch
I hope that McLaren can battle through this problem. They might not have been great in recent years but are coming competitive recently. Hope we do not let the memory of New Zealand's Bruce McLaren down. Like Williams they have seen a lot of great history and deserve more. Where is Ron Dennis when needed!
He probably wasn't diverse enough!
Ricardo a pris de gros risque car je pense que Renault va revenir au premier plan, ils ont un moteur il ne faut pas l'oublier !
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