McLaren pushing on with company restructure
McLaren is pushing on with a £500 million refinancing plan for the entire company, which could include selling a minority stake in its Formula 1 team.
According to a report in the Financial Times, the McLaren Group could even raise the extra cash through a 'Special Purpose Acquisition Company' (SPAC), which can take a private company into public ownership without the need for a formal IPO.
McLaren, which runs an automotive division, its racing team and applied technology arm, has been hit hard by the financial impact of the coronavirus crisis.
Back in June, McLaren agreed a £150 million loan arrangement with the National Bank of Bahrain to help increase liquidity amid mounting concerns over a short term cash flow problem.
While that deal helped it survive the more immediate dangers forced by the pandemic, McLaren still needs to find extra cash until revenue streams from road car sales and F1 start returning to how they were before coronavirus hit.
With the financial situation unlikely to turn around quickly, though, McLaren is looking at a variety of options to make things more secure in the short term.
Mike Flewitt, McLaren Automotive chief executive, told the Financial Times: "We need to restructure the total business.
"We went into this year having two very successful years in automotive, but the total business did not have the liquidity to survive this kind of crisis."
Nothing has been ruled out, and investment could come from private equity funds, individuals, families, sovereign wealth funds or a US-based SPAC.
Flewitt added: "We will look for investors who have a common vision to our shareholder base, both in terms of the structure, direction of the company, and medium-term plans,"
McLaren is in the process of selling and then leasing back its factory in Woking, in a bid to raise extra finances that can help pay down its debt.
Further cash could also come through a partial sale of its F1 team, which has enjoyed a successful season and is battling with Racing Point for third place in the constructors' championship.
Currently, around 56% of McLaren Group is owned by Bahrain's Mumtalakat Holding Company, 14% by Mansour Ojjeh and 10% by Michael Latifi, with the remaining 20% split between minority shareholders.
Related video
Pirelli: Miscommunication led to 2021 F1 tyre criticism
F1, FIA issue statement after Mazepin video incident
Toyota WEC star Conway relishing Lexus Rolex 24 GTD outing
Toyota FIA World Endurance Championship star Mike Conway says he is relishing the chance to pick up "new skills" driving a Lexus GT3 car in this weekend's Rolex 24 at Daytona.
Tandy: Night pace could fluctuate "dramatically" in Rolex 24
Porsche driver Nick Tandy is expecting the pace of GTP cars to change "quite dramatically" when they switch to the new cold-temperature Michelin tire in this weekend's Rolex 24 at Daytona.
Diriyah E-Prix: Evans snatches top spot from Ticktum in FE FP3
Jaguar's Mitch Evans snatched top spot at the end of the Diriyah E-Prix's third free practice session, knocking Dan Ticktum off the top of the Formula E timing board.
Diriyah FE pole leaves Buemi "sad" at how Nissan spell ended
Sebastien Buemi says his pole position pace at the Diriyah E-Prix is "just the beginning", but conceded it left him "sad" at how his time with Nissan ended.
Why Vasseur relishes 'feeling the pressure' as Ferrari's F1 boss
OPINION: Fred Vasseur has spent only a few weeks as team principal for the Ferrari Formula 1 team, but is already intent on taking the Scuderia back to the very top. And despite it being arguably the most demanding job in motorsport, the Frenchman is relishing the challenge
The crucial tech changes F1 teams must adapt to in 2023
Changes to the regulations for season two of Formula 1's ground-effects era aim to smooth out last year’s troubles and shut down loopholes. But what areas have been targeted, and what impact will this have?
Are these the 50 quickest drivers in F1 history?
Who are the quickest drivers in Formula 1 history? Luke Smith asked a jury of experienced and international panel of experts and F1 insiders. Some of them have worked closely with F1’s fastest-ever drivers – so who better to vote on our all-time top 50? We’re talking all-out speed here rather than size of trophy cabinet, so the results may surprise you…
One easy way the FIA could instantly improve F1
OPINION: During what is traditionally a very quiet time of year in the Formula 1 news cycle, FIA president Mohammed Ben Sulayem has been generating headlines. He’s been commenting on massive topics in a championship that loves them, but also addressing necessary smaller changes too. Here we suggest a further refinement that would be a big boon to fans
How can McLaren keep hold of Norris?
Lando Norris is no longer the young cheeky-chappy at McLaren; he’s now the established ace. And F1's big guns will come calling if the team can’t give him a competitive car. Here's what the team needs to do to retain its prize asset
What difference did F1's fastest pitstops of 2022 make?
While a quick pitstop can make all the difference to the outcome of a Formula 1 race, most team managers say consistency is more important than pure speed. MATT KEW analyses the fastest pitstops from last season to see which ones – if any – made a genuine impact
When F1 'holiday' races kept drivers busy through the winter
Modern Formula 1 fans have grown accustomed to a lull in racing during winter in the northern hemisphere. But, as MAURICE HAMILTON explains, there was a time when teams headed south of the equator rather than bunkering down in the factory. And why not? There was fun to be had, money to be made and reputations to forge…
What Porsche social media frenzy says about F1’s manufacturer allure
Porsche whipped up a frenzy thanks to a cryptic social media post last week, and though it turned out to be a false alarm, it also highlighted more just why manufacturers remain such an important element in terms of the attraction that they bring to F1. It is little wonder that several other manufacturers are bidding for a slice of the action.
Subscribe and access Motorsport.com with your ad-blocker.
From Formula 1 to MotoGP we report straight from the paddock because we love our sport, just like you. In order to keep delivering our expert journalism, our website uses advertising. Still, we want to give you the opportunity to enjoy an ad-free and tracker-free website and to continue using your adblocker.