BusinessBusiness RecoveryLotus 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

Lotus gain reprieve in insolvency proceedings

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.”

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