McLaren has taken legal action against a group of creditors to allow it to go ahead with an “urgent” round of refinancing.
The British company, which includes the sports car maker and the Formula 1 team, is seeking to raise cash to avoid what it says in the filing is a potential “liquidity shortfall”. It said this was caused by it having “fallen into severe and unexpected financial difficulty" due to the ongoing coronavirus pandemic.
McLaren Holdings Limited is seeking to secure capital by issuing a bond for more than £650 million against its factory in Woking, Surrey and its collection of historic racing cars. But a group of investors claim that the McLaren Technology Centre and car collection are already employed as security in a bond dating from 2017.
Last week, Judge Anthony Mann agreed to expedite the trial, given McLaren’s claim that it risks insolvency if the dispute isn't settled quickly. The two sides have proposed a two- or three-day trial that will begin in 2 July.
The investors are understood to perceive the new bond issue as undermining their existing investment so have proposed an alternative refinancing arrangement.
The court documents filed by McLaren Group said that an earlier credit agreement of £130m is “fully drawn”. They also said that McLaren’s shareholders had invested a further £291m in the business in March, part of a £500m total investment in the past 18 months.
McLaren Group recently announced plans to shed 1200 jobs across its Automotive, Racing and Applied divisions as part of a major cost-saving programme.
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F1
Will they make it to the first race let alone the end of the season, this sounds serious.
BertoniBertone
Deja Vu
What ? British management rush out a string of models which garner a reputation for catastrophic depreciation and equally as poor customer service in some parts of its dealer network and, surprise, surprise, find themselves in dire economic straits ? Shurely shome mishtake ?
I guess it'll (deservedly) wind up in the hands of German management...just like Aston. When will people learn if you want to build a brand you "get the Germans in" ...like Schreyer and Bierman at Hyundai/Kia.... Ho hum. I feel sorry for the investors.
lambo58
Wot? not enough idiot
Wot? not enough idiot footballers and arabs around tobuy this over-rated unreliable toy- you gotta laugh
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