We’ve discussed the current financial struggles at McLaren on our last two podcasts. First was the desire to seek a $270+M investment for the McLaren Group and then an interest in selling up to 30% of its racing operation.
While we were being callous and suggesting this might be a fun time for Ron Dennis to step back in and buy the team, we also were wondering, out loud on occasion, as to where the Bahrain investment money was? The Mumtalakat holding company is part owner, so why aren’t they coming forward with the operating capital the company needs to remain solvent?
This week those questions may have been answered as it was revealed that the McLaren Group is looking to a new loan from the National Bank of Bahrain for help them stay afloat. Who is this National Bank of Bahrain (NBB) you ask? Well, 44% of the NBB is owned by the Mumtalakat Holding Company, Bahrain’s sovereign wealth fund, who happens to own 56% of McLaren.
I am not clear on last weeks news about a group of investors trying to stop McLaren from offering the building and heritage car collection as collateral to further investments but perhaps the NBB was looking for this kind of collateral? Not sure because the bank would be securing the loan with assets that are already 56% owned but the owner of the bank itself. That doesn’t make sense e but then I don’t run a global bank so I bow out of the speculation due to a lack of understanding.
Regardless, let’s hope that the NBB can assist McLaren and remaining in good health as it weather’s the COVID storm and we can count on seeing Daniel Ricciardo in an orange car turning laps next year, let alone Lando turning laps this year.
Hat Tip: Autosport