The McLaren Group has received a crucial lifeline in the form of a £150 million loan from the national Bank of Bahrain that will buy the company some precious time as it seeks to refinance itself.
The automotive group which includes the McLaren F1 team hit the skids recently, with its car sales tumbling amid the coronavirus crisis, compelling its principal shareholders - Bahrain sovereign wealth fund Mumtalakat, Mansour Ojjeh and Canadian businessman Michael Latifi - to seek an influx of cash to help it weather the storm.
McLaren's most recent attempt to raise funds has been temporarily blocked by a group of creditors who contend that the company cannot use its headquarters and heritage collection as collateral for loans as those assets are already securitized through a bond issued in 2017.
McLaren has subsequently sued the group of investors, contending that it needed to raise £280 million by July 17 or face risks of insolvency.
The National Bank of Bahrain, which is 44% owned by Mumtalakat, has now this stepped in to provide McLaren with some breathing space.
"The National Bank of Bahrain hereby confirms to the markets that final documentation has been signed and all the necessary approvals have been granted in relation to a GBP 150 million financing facility," the financial institution said in a statement published on Monday.