Lotus avoids administration for another week

The Lotus Formula 1 team has been granted a final adjournment in its High Court battle over an unpaid tax bill.

With Renault taking a majority 65 per cent stake in Lotus – the deal signed off two weeks ago by both sides – commercial rights holders Ecclestone and CVC Capital Partners have agreed to the French manufacturer taking on historical constructor status given its previous F1 heritage.

It gives more time for the much mooted sale to Renault to be finalised, though the manufacturer has given no indication that it is close to completing the deal.

Earlier lawyers for HMRC told the judge that a further delay in the case, which has been adjourned once already, was not appropriate.

Opposing the adjournment were lawyers for HMRC (HM Revenue & Customs) who claim that debts are mounting and the team has shown no sign of paying them.

The court heard that West Oxfordshire District Council, in whose area the 400-strong team has its Enstone factory, were owed 483,000 pounds but had submitted a letter supporting the request for adjournment.

If that bonus payment does arrive ” with a significant initial lump sum rather than being paid over several years ” it would allow Renault to make an immediate buyout that could satisfy Lotus’ creditors and prevent financial administration.

The court heard that 905,000 pounds ($1.42 million) of income tax and national insurance contributions fall due to HMRC on Sept 22, with similar amounts unpaid in July and August.