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21 May 2020, 19:54 (Ref:3977605) | #1 | |
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Join Date: Jan 2004
Posts: 53
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McLaren emergency funding hits a snag
Apologies for the spacing on this. It's from a couple different sources.
For those who are interested in this type of thing, originally the plan was for McLaren to receive additional emergency funding. Below is the text of the BBG article earlier this month...further down is the snag...guess the assets are already pledged somewhere else. If McLaren is facing these issues with what one perceives as the "moral" backstop of a Sovereign Fund (Mumtalakat), then one wonders how William's is holding on. https://www.bloomberg.com/news/artic...in-new-funding McLaren Group Ltd., the supercar maker and racing team owner, is seeking about 300 million pounds ($374 million) in fresh funding just months after completing a similarly-sized capital raise, people familiar with the matter said.The British company is working with an adviser as it examines ways to strengthen its finances, according to the people, who asked not to be identified because the information is private.But that effort has now hit a snag with some selected bondholders saying the assets area already pledged! From an article on the terminal from earlier today. "A group of McLaren Group Ltd. bondholders wants to block plans by the supercar maker to raise emergency funds by mortgaging its headquarters and historic car collection, according to people familiar with the matter.Here's the real crux of the matter and one wonders how much time they have to sort this out; "The proposal to transfer the real estate and the historic car collection as a guarantee to new lenders would reduce the security package for existing bondholders and lower their potential recovery in case of insolvency or liquidation, the people said. Bond holders don't take lightly to having their obligations suddenly put lower in the capital structure so the next few weeks are going to be crunch time it seems. Is it possible we could see McLaren fold before Williams??? Last edited by mogwai; 21 May 2020 at 19:59. |
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