Is McLaren about to file for insolvency???
Discussion
anonymous said:
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I think you forget that he was in charge for much of the time since their last championship win. He was also in charge when they started road car production (12C onwards). In any case, whilst they clearly had financial issues pre-Covid and massively exacerbated by Covid, disaster is too strong a word. They are not going to go bust. One way or another there are enough investors around who will bet on them long term and will cover them short term.footsoldier said:
good lord this is a sh*t show! if this is honestly real, Mclaren won't be able to raise money in time. And the funny thing is that I totally agree with the group blocking the new financing. At the end of the day, they lent money to Mclaren, Mclaren have s
t the bed financially for many reasons non covid related, and now they are facing the music. the existing Creditors can do what they like in my opinion. it's business, and Mclaren are ignoring their existing contracts. go bust and start again! this is basically the foundation of British automotive manufacturing!SydneyBridge said:
I still wonderi f they will get to a point where they will have too much debt to survive. However many cars they sell, they are in trouble jf all profit goes on paying debt
We can tell a little from publicly available information. Off the top of my head, they have £570m owed on bonds at 5.75% and £290 million of preference shares at 15% interest. Those would add up to £76m of interest ever year. The new loan will be on top of that.SydneyBridge said:
I still wonder f they will get to a point where they will have too much debt to survive. However many cars they sell, they are in trouble jf all profit goes on paying debt
Perhaps a microcosm of the macrocosm of the whole UK debt situation ... current/post Covid-xx
Skim read that piece. I know the people behind Carbotech. If perhaps one of the creditors holding security I would not want to be on the wrong side of them. Opportunists a word that springs to mind. Not a good situation. Conversely I see the value of the cars going up if the worst happens.
anonymous said:
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Businesses fail because they run out of cash rather than lack of profitability..These businesses generally waste money on a daily basis year in, year out out of sheer ignorance,complacency and sheer unwillingness to make much needed changes to survive..McLaren lacks the ability to adapt to change which is the first rule of evolution and hence long term survival..
IMI A said:
Skim read that piece. I know the people behind Carbotech. If perhaps one of the creditors holding security I would not want to be on the wrong side of them. Opportunists a word that springs to mind. Not a good situation. Conversely I see the value of the cars going up if the worst happens.
I forgot Carbotech yes they would need to be onside 
I agree with you about the cars going up if they go bump.
McLarenGuru said:
Yes production has stopped all together on sports series. 720s will be manufactured until late 2022, early 2023. Only customer ordered 720S will be built this year, to give dealers the chance to clear current stock. A wise move in my opinion.
The Sports series hasn't stopped yet, they are still building 600LT and 620Rjtremlett said:
think you forget that he was in charge for much of the time since their last championship win. He was also in charge when they started road car production (12C onwards). In any case, whilst they clearly had financial issues pre-Covid and massively exacerbated by Covid, disaster is too strong a word. They are not going to go bust. One way or another there are enough investors around who will bet on them long term and will cover them short term.
Agree, McLaren will not be allowed to go bust. Major shareholders (Bahrainis) have too much already invested to allow that to happen. I recently posted two articles on both McLaren's and Aston's business situations. In many ways Aston is on much more trouble.Gassing Station | McLaren | Top of Page | What's New | My Stuff