McLaren’s financial problems ‘have been solved’

Date published: June 29 2020

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Great news from McLaren with Zak Brown saying their financial problems have been “solved” with an announcement coming before the week is out.

Earlier this month reports emerged claiming that McLaren was looking to sell a minority stake in its Formula 1 team to raise much needed capital.

Days later the Woking-based company began legal proceedings against its bond holders to gain permission to use its factory and historic car collection as collateral for a loan.

The bond holders were opposed to the idea, adamant those possessions were their own guarantees.

A day later Forbes revealed that McLaren had until mid-July to find much needed funds or the company would be declared insolvent.

The matter has yet to go before the London High Court.

In the meantime, though, it seems McLaren has found a solution to its money problems.

The team’s chief Brown has revealed that an announcement about that will be made before the week is out.

“The problems have been solved,” he declared to Auto Motor und Sport.

“You will hear positive news from us in the next few days.”

It is believed that McLaren has secured a £150m loan from the Bank of Bahrain.

The American was asked about rumours that McLaren’s shareholders had halted the team’s plans for a new wind tunnel and simulator.

Brown acknowledged they had, but for good reasons.

“When Corona broke out, all programs were stopped,” he said.

“Our shareholders first wanted to see how the situation developed. Now that the financial problem has been sorted out, these programs are slowly starting up again.

“There are still a few uncertainties. We still don’t know the final number of races and Formula 1 earnings this year.

“We also do not yet know if there will be a second wave of infections. Therefore we are still careful.”

He is, however, hopeful that the forthcoming cash injection together with F1’s budget cap will help McLaren return to the front of the grid.

“We are able to take full advantage of the cost cap and unwind our program as planned,” he added.

“Together with a strong driver duo, this brings us back to the road where victories and titles should end up.

“We are back in business.”

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