BAHRAIN TRIES TO PROTECT MCLAREN CARS FROM BANKRUPTCY

Well-known sports car manufacturer McLaren is going through difficult times, which hit a significant number of auto manufacturers this year. The revenues of the company decreased disastrously, a demand for the sports cars fell, and the company itself was to begin preparations for bankruptcy proceedings.    

Now, apparently, McLaren received a financial reprieve from such a development of events. The National Bank of the Kingdom of Bahrain (NBB) agreed to provide it with a £ 150 million credit.

According to the market analysts, the company has repeatedly tried to negotiate with the British government to avoid bankruptcy, but mutual understanding has not been found.

The McLaren team did not receive any financial support from the government.

The company was ready to transfer its museum of racing cars and headquarters in Woking as collateral. However, it did not manage to quickly obtain a loan secured by the historical collection. The optimistic plans of the company faced opposition of the lenders. According to the latter, the company had already used this asset to secure loans worth £ 130 million three years before.    

The company itself, which has managed to make the court of London consider its case in an expedited manner, insists that the old debts have been paid off, and the Technology Center has been bailed out. As a result, the court hearings began, which should end soon with a decision of the High Court of London.

If the court takes the side of the McLaren team of lawyers, the company will receive £ 280 million, which will solve the main problems of the car brand for the next two years.

In order to fully get out of debts, McLaren needed about £ 300 million. Now it is clear that half of the amount will be received, the likelihood that the brand will withstand the crisis has become significantly higher. Moreover, the company received a loan from NBB on special conditions, more favorable than the market ones. This is due to the common capital of the bank and the company. According to the experts, Mumtalakat, a holding company that also has a 56% stake in McLaren, owns a 44% stake in Bahrain Bank.

The main obligations that the company must pay off before July 17 are the debts of McLaren Automotive automobile enterprises.

Previously, the company had to lay off 1,200 (more than 25%) employees and put a 30% stake in the F1 team up for sale.

Now, after the regulatory authorities have approved a possibility to raise funding from the royal family of Bahrain, the supercar unit, the F1 team and the company itself can start a new life.

It is known that, along with the Mumtalakat fund, large blocks of shares of the company are also owned by the millionaire Mansour Ojay from Saudi Arabia and the Canadian Michael Latifi, whose son participate in competitions of the 2020 season.