Finally! Some good news.
Things weren't looking good for McLaren last week when reports suggested that the carmaker was facing possible bankruptcy. Having laid off 1,200 employees, the company examined whether it could legally raise more debt against some of its highly-valued assets, including its Woking factory and historic Formula 1 car collection. Some shareholders, however, believe doing so will leave the automaker nearly worthless and result in insolvency. A court battle is currently being waged over the matter. Court filings further revealed McLaren needed to find financial relief by July 17, or else. Fortunately, it found it.
According to Germany's Auto, Motor und Sport, McLaren Formula 1 team principal Zak Brown has stated that "the problems have been solved. You will hear positive news from us in the next few days."
In addition, the National Bank of Bahrain claims it is offering McLaren a $184 million lifeline that should secure things for the foreseeable future. It shouldn't come as much of a surprise this is the funding source. Bahrain's sovereign wealth fund is already the McLaren Group's majority stakeholder with 56 percent. The fund also has a 44 percent stake in the National Bank of Bahrain.
The Formula 1 season, which had been delayed, is also slated to kick off next weekend, so McLaren is likely to see some revenue from there by way of prize money and television rights. In regards to its road cars, the McLaren 765LT supercar remains in high demand, especially in the US.
As well as keeping the factory's lights on, the financial jolt will almost certainly be used towards development of future models, such as the 570S successor that's recently been delayed until 2021. The ultra-limited edition McLaren Elva remains on track to reach owners later this year, but CEO Mike Flewitt previously said the company's ambitious $1.6 billion Track25 plan is probably two years behind schedule, though this has not been officially announced.
It's amazing how fast McLaren's previously solid financial situation unraveled once the pandemic struck on a global level. But at least now it doesn't appear to be terminal.