Site logo

McLaren secures 150m Bahrain loan

NEWS STORY
29/06/2020

The McLaren Group has secured a 150m "financing facility" with the National Bank of Bahrain.

The bank confirmed the deal in a brief statement this morning.

"The National Bank of Bahrain hereby confirms to the markets that final documentation has been signed and all the necessary approvals have been granted in relation to a GBP 150 million financing facility," it read.

The agreement comes at a time the McLaren Group is looking at a number of ways of raising money, as its supercar and F1 divisions are hit particularly hard by the pandemic.

Such is the need for cash that the company has to gone to court to challenge a number of bond holders who had blocked plans to raise funds against the F1 team's historic car collection and the Group's factories.

As we reported last week, so desperate was the situation that unless 280m could be raised by the middle of next month the company faced insolvency.

While the loan offers the Group, and thereby the F1 team, some much needed breathing space, there is concern that the deal gives the Bahrain sovereign wealth fund Mumtalakat even more of a grip.

Other than the 57.7% stake it already has in the Group, Mumtalakat owns a 44% slice of the National Bank of Bahrain.

LATEST NEWS

more news >

RELATED ARTICLES

LATEST IMAGES

galleries >

  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images

POST A COMMENT

or Register for a Pitpass ID to have your say

Please note that all posts are reactively moderated and must adhere to the site's posting rules and etiquette.

Post your comment

READERS COMMENTS

 

1. Posted by The stogie, 01/07/2020 18:28

"I'll be they are REALLY happy that they got rid of Ron Dennis now!!"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

2. Posted by Bill Hopgood, 29/06/2020 20:14

"@hussainahm I suspect the concern is that the bank and the wealth fund aren't "racers" per se and may choose to gut the company should they need their money back, especially in a hurry.

Also, all this capital raising could dilute the company value even further, not a good situation for the other shareholders.

Still, hopefully this extra money will give McLaren a chance to get back to the business of making and selling cars to get some cash coming in.

I just wonder what the extra finance was secured on."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

3. Posted by hussainahm, 29/06/2020 20:07

"Why exactly is it a concern?"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

Share this page

X

Copyright © Pitpass 2002 - 2020. All rights reserved.

about us  |  advertise  |  contact  |  privacy & security  |  rss  |  terms