It has been announced this afternoon that the Lotus F1 Team has been able to postpone a winding-up hearing for two weeks after being summoned to the High Court in a legal battle with a number of creditors.
The Lotus Formula 1 Ltd company is facing a financial settlement with creditors after being handed a winding-up petition at the Companies Court this Monday (6th July) with judge Mr Registrar Briggs present, but the hearing has been delayed by 14 days to allow the parties to find an out-of-court settlement.
It is believed the Enstone-based team is waiting for funds to come in to pay its creditors, however, if they are unable to find a resolution over the next two weeks Lotus could be threatened with administration which could put its F1 future under threat.
In a press statement to the media an Xtrac spokesperson stated the following:-
‘The judge has adjourned the hearing for two weeks. This is in order to allow further dialogue during which we will continue to discuss all the options for resolution with Lotus F1.
‘Throughout the past 15 months, Xtrac has manufactured a significant quantity of parts in good faith to ensure the cars can keep running. We have enjoyed a long standing relationship with Lotus F1 and its management; and we hope to resumed this once the now significant debt has been reduced and a positive outcome agreed.’
We saw in 2014 the now defunct Caterham F1 squad fall into administration and out of business, while Manor-Marussia was pulled from the ashes of financial peril during the winter and saved by wealthy outside investors.
Rumours were circulating around the paddock that Renault was supposed to be preparing a takeover of the Lotus F1 team but that seems unlikely given the British team has just signed a partnership with Mercedes as engine supplier until 2020 which is good news for them.
All I can say on the matter is that there is sufficient time for the issue to be sorted out between the two parties and that is what they have to do now. It is clear that both parties want to continue their partnership, sort out what needs to be sorted out and then move on. I really hope that is the case for the team and Xtrac and that they are able to continue working together for each other’s benefits.