McLaren secures future with loan from National Bank of Bahrain
By Thorsten Hendriks 29 June 2020 | 15:15
McLaren has reached an agreement with the National Bank of Bahrain (NBB). The British race team will borrow 150 million pounds (~163 million euros) from the bank to solve the company's money problems in the short term.
The Woking based team wanted to use its historic car collection and the factory as collateral to secure a loan. When the information surfaced that this was the intended plan of the Brits, they were met with resistance. Apparently they had used these properties before to apply for a loan.
McLaren had to go to the High Court to legally establish that the car manufacturer's assets were valid ground. Court documents suggest, according to Autosport, that they have received the go-ahead: 'The proposed transaction allows the group to secure further liquidity as a group in 2021.'
'This will have significant benefits for the group's creditors.' These words show that it is also better for the current investors to dismiss the incident. The risk of double collateralisation of properties weighs less than the risk of bankruptcy.
McLaren in discussion with NBB
While McLaren was in the process of challenging the case in the higher court, they also entered into discussions with the NBB. One of the investors in McLaren, Mumtalakat Holding Company (they own 56 percent of the British race team, ed.) owns 44 percent of the Bahraini bank.
Providing a further loan therefore means that this investor group has amassed a greater amount of influence in the company. This morning a confirmation came through: 'The documents have been signed and all the necessary approval has been obtained to grant a £150 million loan.' (Photo: McLaren F1 Media)