McLaren has officially obtained a loan of 150 million pounds (165 M €) from the National Bank of Bahrain, which will allow it to avoid possible short-term cash flow problems. The coronavirus crisis has indeed damaged the finances of the McLaren Group – which includes the road car manufacturer as much as its competition branch – and pushed the firm to find solutions to secure its future.
McLaren has not hesitated to take legal action in the UK recently to speed up the proceedings. This maneuver was accompanied by the publication of documents revealing a need for 280 million pounds before July 17 so as not to risk insolvency. In parallel with this complex dossier which aims to raise funds to financially restructure the company, discussions have been successfully conducted with the National Bank of Bahrain. The latter is 44% owned by the sovereign wealth fund Mumtalakat, which is itself the majority shareholder of McLaren.
On Monday, the bank confirmed that the loan agreement had been approved and signed with McLaren, allowing the payment of £ 150 million to the Woking firm. This sum will give air and more room for maneuver to the builder to tie up his other refinancing projects, while allowing the buffer in this transition period. This solution could also pave the way for a scenario excluding the sale or mortgage of certain assets such as the brand’s historic cars.
Ultimately, McLaren would be ready to sell up to 30% of the shares of its racing team to attract new investors. For the time being, McLaren Racing has the same financial package as its parent company, namely that around 56% of McLaren Group is owned in Bahrain by Mumtalakat Holding Company, 14% by Mansour Ojjeh and 10% by Michael Latifi. The remaining 20% is distributed among the minority shareholders.
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