Jun.24 (GMM) 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.