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Lotus has seven days to steer out of administration

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21st Sep 2015
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Formula 1 team Lotus has swerved out of administration for at least another week after being granted a seven-day pit stop in insolvency proceedings brought by HMRC.

But with a £900,000 unpaid national insurance and income tax bill for June 2015, the Formula 1 team still looks likely to end its season in administration.

Mr Justice Birss, at London’s High Court, said that this would be the last time that he would grant adjournment, but offered this respite for the company to secure significant funding.

Earlier, HMRC’s lawyers argued that a delay would not be appropriate in this case.

Lotus is in takeover talks with former owner Renault, and has until 28 September to secure its future. But Formula 1 boss Bernie Ecclestone is reportedly putting the brakes on this deal because of payments he claims Renault owes from its days as an F1 contractor. 

The judge said: “The parties have satisfied me that that there is genuinely a real prospect that the first stage of the deal that is being described will be signed in the next seven days, which will allow significant funding to go into the company.”

If Lotus does go into administration 400 workers in its Oxfordshire factory would lose their jobs. The next court hearing will take place the day after the Japanese Grand Prix.

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By waltere
23rd Sep 2015 16:02

Let's hope the deal goes through

Just as well they're not using VW diesel engines, I guess.

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