The Lotus F1 Team is due back in court on December 21 for their debts owed to the UK tax authorities. The court date was originally set for December 7, but the Lotus F1 Team was able to convince the judge to postpone the case, following the confirmation that Renault is in the process of purchasing the team.
The hearing took place at the High Court in London and was originally meant to be the team’s last opportunity to deal with their creditors before being forced to enter administration. The team has been collapsing all season long, settling most lawsuits from creditors. The letter of intent that Renault issued the Lotus F1 Team earlier in the season was a sign of hope for the team.
Confirmation of the sales deal between Lotus and Renault came Thursday last week and was a sign that the team has been saved. The agreement is still under negotiations and is expected to conclude on December 16. The sales agreement will include Renault’s obligation to pay off all creditors before the end of the year and the Lotus F1 Team will have to show this agreement when they return to court.
“It’s the 16th for the SPA [share purchase agreement] and they [Renault] are agreeing to pay all the creditors by the 31st,” Lotus F1 Team CEO, Matthew Carter, told Reuters. “So I guess when we come back on the 21st it will be to ensure that the SPA has been signed. It’s been an interesting process all the way through but we are where we are.”
Renault will be taking over the company once they take ownership of the team. It’s still uncertain which team personnel will keep their job with the team and which will be let go. Carter is one of the management employees that could be let go once Renault takes control. “Everyone’s time and effort has been focused on getting this across the line and now I guess we take stock of the situation and decide which way Renault want to jump. We’ll see how Renault want to run things and what their plans are.”
