McLaren CEO Zak Brown says the team’s recently revealed financial issues have now been “solved”.
The Woking-based brand has been hit hard by Covid-19 with revenues drying up and with nearly £300m in funds through current shareholders also already spent.
McLaren is reportedly considering selling up to a 30 percent stake in the Racing division to raise more money and is hoping to obtain a loan by using its factory and classic cars as collateral.
However, that last move is now subject to a court case as existing noteholders oppose the plan, stating they already had a claim on those assets.
That left McLaren with the very real possibility of going insolvent by July 17, with Forbes revealing this is when bills with suppliers are due to be paid.
But it appears a £150m loan from the Bank of Bahrain, which is part-owned by McLaren’s majority stakeholder Mumtalakat, has put the company back on firmer ground.
“The problems have been solved,” Brown stated to Germany’s Auto Motor und Sport on Monday. “You will hear positive news from us in the next few days.”
Also Read:
- McLaren could fall to sixth in F1 order as Renault reveals huge Austria upgrade
- McLaren aiming too ‘annoy’ top three teams from 2022
F1 boss Andreas Seidl has also reassured McLaren’s position going forward, though maintains there was never a risk to the team.
“It was a tough period for the team, steering a team through these financial difficulties we were in,” the German told reporters on a Zoom call.
“The positive news we had yesterday about the funding which is in place now, is I think an extra boost, an extra motivation for all of us who have fully focused again on what we like to do most and what we do best.
“With me and Zak having detailed knowledge of what was actually going on, there was never a doubt of McLaren not being on the grid next year,” Seidl added.
There is still expected to be some lasting impacts from the coronavirus, however, with plans for a new windtunnel now delayed.
But as for the push to close the gap to the top three teams, well that remains firmly on track.
“We are able to take full advantage of the cost cap and unwind our program as planned,” CEO Brown confirmed.
“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.”