Lotus gain reprieve in insolvency proceedings

Lotus gain reprieve in insolvency proceedings

Lotus Formula One team handed a week's breathing space in insolvency proceedings brought against it by HMRC

THE Lotus Formula One team has been handed a week’s breathing space in insolvency proceedings brought against it by HMRC.

Lotus, facing possible administration over a £900,000 unpaid tax bill, was granted a second and final adjournment by in its court case with the taxman over its failure to pay PAYE for June 2015.

Justice Birss at London’s High Court on Friday, said that the hearing would be adjourned to provide time for the team to agree a deal that would provide funding to “significant funding to go into the company”.

Lotus is reportedly in takeover talks with Renault.

Lawyers for HMRC opposed the request for adjournment on the grounds that debts were mounting and, while the team’s employees and drivers had been paid HMRC had not. Lotus argued that if it entered administration 400 jobs would be lost.

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

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

2m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

3m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

3m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

4m

Related Articles

Late payments like "crack cocaine" for large businesses

Business Recovery Late payments like "crack cocaine" for large businesses

1m Tom Lemmon
More bad news for Debenhams

Business Recovery More bad news for Debenhams

8m Emanuela Hawker, Reporter
Insolvency and corporate governance

Business Recovery Insolvency and corporate governance

8m Chris Laughton
Impact of Brexit on restructuring and insolvency

Business Recovery Impact of Brexit on restructuring and insolvency

10m Emma Smith, Managing Editor
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

1y Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

1y Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

1y Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

1y Emma Smith, Managing Editor