McLaren has been granted a fast-tracked hearing in their court case against noteholders as the company seeks urgent new funding.

The Woking-based operation has been one of the most impacted Formula 1 teams during the coronavirus pandemic and has considered various sources of money to remain afloat as revenues tank.

Shortly after the crisis began, it raised roughly £300m from stakeholders and had a request for help from the UK government turned down, despite taking advantage of its furloughing program.

More recently, the company is weighing up raising money through selling up to a 30 percent stake in its Racing division, which covers their F1 and IndyCar teams.

According to court documents, McLaren now needs to raise around £275m and is trying to do that by releasing the security it has available through its factory and classic cars.

However, noteholders are blocking that as they already lay claim to those assets and instead want McLaren to place them to a new subsidiary which would then take out a loan, using them as a guarantee, to cover the amount needed.

McLaren though argues they can sell those assets and lease them back under certain circumstances, with the current situation one such scenario, and that is why they are going to court to try and force their plan through.

"An ad hoc group of creditors (including hedge funds and distressed debt investors) holding a beneficial interest in two series of notes issued by the Group (the "Ad Hoc Noteholders") have claimed that it would be unlawful for the Security Agent to release the Transaction Security," court filings say.

"Indeed, they have recently threatened to sue the Security Agent for breach of duty if the release sought by the Company is granted.

"This threat has placed the Security Agent in an invidious position and has jeopardised the Company's urgent efforts to raise new money."

McLaren also sees the opposition of bondholders as simply a delay tactic to force the company into agreeing to their plan.

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And time is of the essence with the company needing a judge to decide before July 10 as the funds are required by July 17 to pay off suppliers, per an agreement, Forbes explains.

McLaren also says the money would give the company sufficient funds to remain operational until early 2021.

On the timeline, Judge Anthony Mann reportedly called it "ambitious" but agreed a quick outcome was needed.

Failure to do so would see McLaren basically run out of money, and "the one remaining realistic financing option open to the Group, namely the transaction with the noteholders will collapse and the Group will then have no realistic prospect of avoiding an insolvent liquidation."

Troubling times indeed.