British McLaren sells historic cars to raise money

 British McLaren sells historic cars to raise money

The main shareholder in the company - with the Bahraini sovereign fund "Mumtalakat" owning 60% - agreed to support it with an additional amount of 100 million pounds ($ 123 million).

McLaren made a loss of £203m in the nine months to September

Cash-strapped McLaren Holdings recently sold some of its prized heritage cars to Bahrain's sovereign wealth fund for a capital raise.

McLaren said earlier this week during its third-quarter earnings announcement that the luxury car maker was forced to seek cash injections after identifying "certain technical upgrades" to its Artura hybrid supercar that caused delivery delays.

The company clarified that its main shareholder - with the Bahraini sovereign fund "Mumtalakat" owning 60% - agreed to support the company with an additional amount of 100 million pounds ($ 123 million).

A McLaren spokesman confirmed the sale of some heritage vehicles to the company's main shareholder for an infusion of cash, without disclosing the details of the sold cars.

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McLaren heritage cars include 54 rare cars participating in the "Formula 1" race and the "Formula 1" super-fast cars, according to its annual report for the year 2021. The same report states that the company sells its cars from time to time.

"We are in active discussions with all shareholders regarding the recapitalization of the group," McLaren said on an earnings conference call, noting that the additional funds would not be sufficient. The company is also continuing talks about potential partnerships.

McLaren made a loss of £203m in the nine months to September, compared to a loss of £69m during the same period in 2021. Cash at the end of the third quarter fell to £87m, from £171m.

The British company has sought emergency funding several times over the past few years from shareholders amid lengthy delays in launching Artura.

The company launched its latest round of fundraising just months after it awarded its shareholders - which also include investment firm Ares Management Corporation and Saudi Arabia's Public Investment Fund - £125m through convertible preferred shares.