Discussion
C Lee Farquar said:
Hugo Stiglitz said:
It doesn't take a rocket scientist. McLaren assets are tied up in a debt promise.
What's a debt promise, it's not a term I've come across whilst launching rockets or otherwise?Fresh cash input requires: promise, bond, security, whatever other word .. the principle is pretty basic and I'm amazed how many are in some way finding this a hard concept to understand. They can have the money tomorrow... So long as they can prove their assets are not being leveraged across multiple lenders.
TheDeuce said:
Oh c'mon. Who cares what term is used?? They have routinely been borrowing and managing a debt. They want to renew it again, but there is reason for the lenders to suspect that the assets they will have in security, are already used to secure another loan.
Fresh cash input requires: promise, bond, security, whatever other word .. the principle is pretty basic and I'm amazed how many are in some way finding this a hard concept to understand. They can have the money tomorrow... So long as they can prove their assets are not being leveraged across multiple lenders.
You've got that ass about face as far as the Court documents are concerned. But who cares.Fresh cash input requires: promise, bond, security, whatever other word .. the principle is pretty basic and I'm amazed how many are in some way finding this a hard concept to understand. They can have the money tomorrow... So long as they can prove their assets are not being leveraged across multiple lenders.
TheDeuce said:
Oh c'mon. Who cares what term is used?? They have routinely been borrowing and managing a debt. They want to renew it again, but there is reason for the lenders to suspect that the assets they will have in security, are already used to secure another loan.
Fresh cash input requires: promise, bond, security, whatever other word .. the principle is pretty basic and I'm amazed how many are in some way finding this a hard concept to understand. They can have the money tomorrow... So long as they can prove their assets are not being leveraged across multiple lenders.
Not sure you've understood.Fresh cash input requires: promise, bond, security, whatever other word .. the principle is pretty basic and I'm amazed how many are in some way finding this a hard concept to understand. They can have the money tomorrow... So long as they can prove their assets are not being leveraged across multiple lenders.
They're not renewing debt. They're maxed out and now looking to take on more debt.
The assets they want(ed) to sell are currently security for existing debt. They cannot sell them without permission from the trustee of the debt. They are asking the court to declare they can split out some of the assets under the current security to be used as security for new borrowing. The current debt holders are arguing those assets cannot be removed as their security and must not be sold.
In the intervening period it's been reported McLaren have been offered unsecured borrowing by a Bahraini bank associated with McLarens existing majority shareholder.
It's being reported McLaren are continuing to seek the declaration regards the security, presumably so they know if they burn through the new loan they understand whether they can split out and sell the assets as previously planned.
I heard from a friend that McLaren have been talking to Mercedes for a while about road car engine supply. Not crate engines AMG / Aston style but their own bespoke engines that will be a development of the current units.
This would make sense as future engines will involve some electrification and will be costly to develop ?
This would make sense as future engines will involve some electrification and will be costly to develop ?
Exige77 said:
I heard from a friend that McLaren have been talking to Mercedes for a while about road car engine supply. Not crate engines AMG / Aston style but their own bespoke engines that will be a development of the current units.
This would make sense as future engines will involve some electrification and will be costly to develop ?
They'll have to find a way of paying for them...This would make sense as future engines will involve some electrification and will be costly to develop ?
Dermot O'Logical said:
Exige77 said:
I heard from a friend that McLaren have been talking to Mercedes for a while about road car engine supply. Not crate engines AMG / Aston style but their own bespoke engines that will be a development of the current units.
This would make sense as future engines will involve some electrification and will be costly to develop ?
They'll have to find a way of paying for them...This would make sense as future engines will involve some electrification and will be costly to develop ?
Exige77 said:
I heard from a friend that McLaren have been talking to Mercedes for a while about road car engine supply. Not crate engines AMG / Aston style but their own bespoke engines that will be a development of the current units.
This would make sense as future engines will involve some electrification and will be costly to develop ?
Oh the irony. If I understand the history correctly, it was the road car programme that precipitated the "great bust up" with Mercedes all those years ago?This would make sense as future engines will involve some electrification and will be costly to develop ?
skwdenyer said:
Exige77 said:
I heard from a friend that McLaren have been talking to Mercedes for a while about road car engine supply. Not crate engines AMG / Aston style but their own bespoke engines that will be a development of the current units.
This would make sense as future engines will involve some electrification and will be costly to develop ?
Oh the irony. If I understand the history correctly, it was the road car programme that precipitated the "great bust up" with Mercedes all those years ago?This would make sense as future engines will involve some electrification and will be costly to develop ?
2fast748 said:
If you call another £150m of debt secured to kick the can down the road for a bit more time, then yes2fast748 said:
That's good news. Hopefully they'll now be able to go a couple of weeks without announcing a special edition.Piginapoke said:
If you call another £150m of debt secured to kick the can down the road for a bit more time, then yes
Not sure whether you mean it is secured borrowing or that McLaren have secured some borrowing. Considering the ongoing court case, suspect it's the latter. Wonder if there's a contractual route for it to turn into equity of they start to hit the buffers?From the Autosport article it seems that McLaren needed £280m, so this is a little over half of that.
The question remains- Can they manage on the £150m loan from the Bank of Bahrain (the majority owner of which is Mumtalakat) or do they still need to inject more capital to give them the liquidity to restore operations, and make the businesses viable?
The question remains- Can they manage on the £150m loan from the Bank of Bahrain (the majority owner of which is Mumtalakat) or do they still need to inject more capital to give them the liquidity to restore operations, and make the businesses viable?
Results get sponsors.
McLaren to get Gulf sponsorship? - https://www.autosport.com/f1/news/150799/mclaren-s...
McLaren to get Gulf sponsorship? - https://www.autosport.com/f1/news/150799/mclaren-s...
LaurasOtherHalf said:
I mean, it's hardly a title sponsor though is it? Does the engine not need to run using Petronas fluids however? Not unknown in F1 circles didn't Lotus have barrels of PDVSA which didn't contain their product a few years back?
Taking a wild stab in the dark but I bet the Gulf McLaren F1 GTRs that raced at Le Mans weren't using Gulf fuel and oils in their BMW engines either. Maybe Gulf could be named for the Petronas in a deal like when the Ferrari engines in the Saubers were called Petronas. Who would ever know for sure 
FourWheelDrift said:
Taking a wild stab in the dark but I bet the Gulf McLaren F1 GTRs that raced at Le Mans weren't using Gulf fuel and oils in their BMW engines either. Maybe Gulf could be named for the Petronas in a deal like when the Ferrari engines in the Saubers were called Petronas. Who would ever know for sure
Quite - us F1 forum bores might figure it out and care.. But from the marketing perspective, it's just brand association/recognition. I doubt the Mclaren runs on Huski chocolate either Gassing Station | Formula 1 | Top of Page | What's New | My Stuff