McLaren in talks with National Bank of Bahrain for loan
General
- GPblog.com
McLaren is in a bit of a financial mess to pay the upcoming bills, so they are looking for new ways to get their finances in order. One of the steps they've taken is to talk to the National Bank of Bahrain to secure financing that will allow the team to cover the upcoming costs.
Negotiations
According to Sky News, McLaren is detailed negotiations with the bank to release more than £150 million. It remains to be seen whether it will succeed, given that the agreement is far from on the table. Interestingly, one of the major shareholders in the bank already has a stake in McLaren.
The National Bank of Bahrain is 44 percent owned by the Mumtalakat Holding Company, which is an equity fund. This company already owns 56% of the McLaren shares and could therefore make an additional distribution through its bank, provided the paperwork is completed. If it comes to that, Mumtalakat is involved with McLaren in two ways.
Court
In the meantime, McLaren is also working on a mortgage with their fleet and premises as collateral, but not everyone is working on that. So on July 2 there will be an emergency hearing at the British court to get that financing plan back on track.
The consequences of the pandemic are quite big for McLaren. Sports cars that are lucrative for the company will not be paid and there will be no racing, resulting in a sharp drop in revenues. As a result, McLaren has already had to lay off 1,200 people earlier this year