McLaren’s short-term future has been secured after confirmation of a £150 million loan from the National Bank of Bahrain (NBB).
The British supercar manufacturer and Formula 1 team has been hit hard by the coronavirus pandemic, with its automotive business posting a £133 million loss for the opening quarter of the year as a result of stalled car sales, and these losses are expected to deepen when it posts its latest results next month.
As a result the McLaren Group has been seeking a vital and urgent injection of funding to allow it to continue trading. So desperate has the situation become that the company launched legal action in London’s High Court after plans to raise funds against its factory and historic car collection were blocked by existing lenders.
In its legal documents it was claimed that should no funding be forthcoming by July 17, then it could face insolvency.
Whilst the outcome of that case has yet to be decided, McLaren approached Bahrain’s national bank to discuss a loan of £150m, which would allow it to continue as a going concern.
On Monday the NBB issued a brief statement confirming agreement had been reached.
“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.”
McLaren’s largest shareholder, Mumtalakat is also the largest shareholder in the National Bank of Bahrain, with a 49 per cent stake.
The loan by no means McLaren’s financial difficulties are over, but does buy it some much needed time.