This archive report was first published on 24 June 2020.
McLaren's Formula 1 team is on the brink of financial disaster, with the team's finances in a dire situation that could lead to insolvency by July 17, 2020.
According to reports, McLaren is seeking a High Court declaration to use its Woking headquarters and historic car collection as collateral for a new loan, but time is running out.
Days after it emerged that the team could sell a stake in its Formula 1 team to help cover costs, news of McLaren's financial troubles again made headlines as the team sought legal help from the British courts.
McLaren needs to find additional funds and the team needs its premises and historic cars to do that, but the situation is becoming increasingly desperate.
Forbes reports that McLaren says it will become insolvent if the Note holders don't allow it to release the assets from the security and sell them or secure a new loan.
McLaren's financial woes are not just limited to its Formula 1 team, with the company also facing massive financial losses due to the pandemic and a decline in sales of its McLaren road cars.
