McLaren Poised to Secure Loan from National Bank of Bahrain
2020-06-25 - 6:26 p
Bahrain Mirror: McLaren is poised to secure a loan from the National Bank of Bahrain to solve its cash-flow problems, news websites have learned.
McLaren has found itself short of cash as a result of the coronavirus crisis, which has not only lowered revenues from its Formula 1 operation but has had a major impact on the luxury car market, meaning sales of its supercars have dried up.
The NBB is 44% owned by the Mumtalakat Holding Company, Bahrain's sovereign wealth fund, which also owns 56% of McLaren.
A loan between the two parties would be on more favorable terms than those available on the financial markets.
McLaren said in documents lodged for its court case against the bondholders: "The pandemic has had a massive and detrimental effect on the group's trading performance.
"The start of the F1 season has been delayed. Car dealerships have temporarily closed; supplies have been interrupted; manufacturing has been suspended or impeded; customer orders have declined; sponsorship revenues have fallen and additional costs have arisen from health and safety measures."
Court documents have indicated that McLaren is seeking £280m, and that new funding is required by mid-July as the impact of the COVID-19 crisis hits the company hard.
In effect the Bahrain connections mean that it won't necessarily be a requirement that the properties and heritage cars are released and available as security.
McLaren last month announced plans to cut 1,200 jobs, the majority in its road-car division, known as Automotive.