Lotus trying to pay off debt

Share This Post

The Lotus F1 team was implicated in a winding-up court proceeding earlier this month and it now seems the team will need to find some serious cash to payoff creditors if it plans on continuing in F1.

According to a report, the team will need to clear nearly $1 million in debt:

“This year, according to court documents, 27 “unsatisfied judgments” worth £561,408 in all, have been made against Lotus.

The largest of these was £132,816 and the smallest was the demand for £97. The most recent was on July 10 for £1,571.”

Reading some of the responses from the team gives me the impression that it is, simply, what it is and they expect the court to re-assemble in September for some go-forward decisions.

Reality is, this is a serious concern for the team and has fueled some of the talk about Renault buying the team (which would be re-buying the team as they sold it to Genii Capital back in 2009) and making a complete works team from the operation.

according to the article, Lotus made a £64.9 million net loss on revenues of £92.7 million and clearly there were folks who have not been paid yet so things are getting very concerning.

Hat Tip: The Express

14 COMMENTS

0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

14 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

MIE

To put that mllion dollars in context,it represents possibly two or three days of expenditure for the team. Even Manor are spending over a million a week. While this sounds a lot, it isn’t that significant in F1 terms.

runnah

And that figure doubles anytime Pastor is in the car.

Shocks&Awe

Well, I don’t know about that, but it IS interesting that Pastor brought in $18 million in sponsorship money for the team, but there are 19 races this year… Maybe Pastor has a crash-flow, I mean, cash-flow problem?

Junipero Mariano

That’s strange, I wonder what’s draining all the cash flow??

jakobusvdl

LOL ;-)
Snappy line Junipero, but to give the crash-tastic Pastor his due, he really has tidied up his act this season. I guess he needed to, his contribution to the $65million loss last year would have been ‘substantial’, and his contribution to team points ‘insubstantial’.

MIE

Just how many penalties did he get in Hungary. Without those, he could have been in fifth place.

Patrick Chapman

MIE, you are correct in what you say, a million dollars isn’t much if you have lots of money but if you don’t have it then it becomes a very large fortune indeed. If negative camber is right then Lotus have just made a loss of 28,7 million pounds and the extra 1 million that you mention could just be the straw that breaks the camels back

Patrick Chapman

@ Negative Camber. I have a question. When CRASHGATE reared it’s ugly head, as we all know, Flavio was given a life ban from F1 and Renault let him go. Also if my memory is correct, Renault were given a suspended life ban at the same time. As a result of this (I think) Renault sold their team and it became Lotus. This was done to make sure that they couldn’t be banned. What do you know about this situation and how would it affect Renault from re-entering as a team owner? Is the ban still in effect. I would… Read more »

Shocks&Awe

Renault was given a suspend 2-year ban, not a lifetime ban. And Briatore’s has since been lifted. So the answer on how it would affect Renault now would seem to be “not at all”.

Patrick Chapman

Thanks for that, the memory is getting very old.

Shocks&Awe

Same here, but you got me curious and I spent some time googling/reading some old articles!

Junipero Mariano

That’s strange, I wonder what’s draining all the cash flow?

Dr T

Geez… struggling even with Pastor’s money

Andreas Möller

Well, they nearly didn’t make FP1 because Pirelli refused to release their tyres until debts had been settled. it wasn’t until 45 minutes or so before session start that they started fitting Lotus’ tyres to their wheels… It was a minor “cash flow” issue, as Sky put it – they get their prize money at the end of the season, but have to pay for stuff right now. Hmm, I wonder if my local grocery store would take a similar excuse from me…? :)

PatreonPayPal
14
0
Would love your thoughts, please comment.x
()
x