Ahead of the opening of the 2020 Formula 1 season in Austria this weekend, McLaren reached a £ 150million loan deal with the National Bank of Bahrain to shore up its finances.
The UK team has assessed a number of options available to them to secure the funding needed to solidify their long-term future, following the challenges the coronavirus pandemic has placed on the company.
One option was to take legal action to allow them to take out a loan on their Woking plant and a collection of heritage cars.
Another option was to secure funding through the National Bank of Bahrain, 44% owned by Bahrain’s sovereign wealth fund Mumtalakat Holding Co – which has a 56% stake in the McLaren group.
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On Monday, the National Bank of Bahrain said in a statement that “final documentation has been signed and all necessary approvals have been granted for a £ 150million financing facility”.
The deal allows McLaren to focus fully on the races ahead, with cars entering the track on Friday, while giving them more time to find additional funding that they hope can secure their long-term future and give them. the platform to become a leading team again. .
The last few months have been difficult for the company, with the McLaren Group announcing that it will lay off around 1,200 employees in its technology, automotive and racing businesses.
The move is part of a restructuring in response to the impact of the coronavirus pandemic and the establishment of a budget cap in F1 from 2021. McLaren made huge strides last season, becoming the strongest team in midfield to finish fourth in the constructors’ championship, their best result of the season since 2012.
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