McLaren takes legal action to secure vital new loan

The McLaren Group has asked a court to allow it to use its factory and heritage collection as collateral for a new loan aimed at stemming “severe and unexpected” financial difficulties.

The automotive company, which includes McLaren Racing, has been legally challenged by a group of creditors who contend that the McLaren Technology Center and its heritage collection are already employed as security in a bond offering dating back to 2017, according to a report from the BBC.

McLaren’s global sales have collapsed since the onslaught of the coronavirus crisis, while McLaren Racing’s revenues have also been severely impacted by F1’s disrupted season.

    McLaren Racing considering selling stake to raise funds

According to court documents, McLaren shareholders injected £291m into the business in March of this year to fund its initial business plan and keep the company going in anticipation of the COVID-19 crisis, while a £130m credit line has been fully drawn.

To keep itself afloat amid the economic downturn and an “impending liquidity shortfall”, McLaren is seeking another loan from investors of £280m, with funds to be provided “no later than July 17”.