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McLaren has secured a rescue loan of 150 million British pounds (approximately $184.5 million) from the National Bank of Bahrain, the automaker and race team said Monday.
Bahrain, through its Mumtalakat sovereign wealth fund, is the majority shareholder of McLaren, owning 56.4% of the company. The sovereign wealth fund is also the majority shareholder of the National Bank of Bahrain.
The funding will help McLaren pay suppliers and ensure its race team is on the grid for this weekend’s start of the 2020 Formula One World Championship in Austria.
McLaren’s finances have taken a sharp hit this year due to a crash in its revenues caused by the freeze on sales and the delayed start of the 2020 F1 season caused by the Covid-19 coronavirus pandemic.
McLaren’s headquarters in Woking, United Kingdom
Some of the details of McLaren’s financial troubles surfaced last week following a lawsuit filed by the company against some of its creditors, who previously lent McLaren money based on the collateralization of its headquarters and classic cars. McLaren is suing to lift a block on the collateralization of its headquarters and classic cars for new loans.
In the lawsuit, McLaren said it required the new funds to ensure it “can continue as a going concern into 2021,” and that they would help to prevent a “cash flow crisis and a value destructive insolvency.”
Despite McLaren receiving a fresh loan from the National Bank of Bahrain, its lawsuit is still expected to proceed next month.
There have also been reports that McLaren is looking to sell a stake in its F1 team, and in May the company said it will shed 25% of its staff.