McLaren sounds the alarm and makes a desperate attempt to refinance Formula 1

McLaren sounds the alarm and makes a desperate attempt to refinance

By Tomas Mota 23 juni 2020 | 10:22

McLaren is in serious trouble. It was previously suggested that the British racing team was willing to put a minority share of the Formula 1 team up for sale. However, the most recent reports from Woking make it clear that a short-term financial injection is necessary.

"McLaren has taken legal action to allow it to secure "urgent" refinancing", the BBC notes. "The company is experiencing severe and unexpected financial difficulty."

The company speaks of a liquidity shortage for which they must find an emergency solution no later than July 17. The new funding is needed after the team was allocated nearly £ 300 million (€ 330 million) in March, to survive the coronavirus crisis.

McLaren at the Supreme Court

Why must they take "legal" action? McLaren plans to take out a loan with their historic cars and the factory complex as collateral. However, a group of investors claims that in 2017 McLaren also used these assets as collateral for a loan.

This loan is said to have delivered the British racing team around £ 650 million (€ 720 million) three years ago. Therefore, these assets of the company cannot be made available again as collateral.

McLaren is now going to the Supreme Court. It is being considered whether McLaren's refinancing plan is legally permitted, so next week it will become clear whether the British can secure the financing. (Photo: McLaren F1 Media)



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