Belfast Telegraph

UK Website Of The Year

Home News UK

Lotus wins breathing space in HMRC insolvency proceedings

Published 18/09/2015

Lotus is reported to be in talks with Renault
Lotus is reported to be in talks with Renault
The case is being heard at the High Court

Lotus has won a seven-day breathing space in insolvency proceedings brought against it by the taxman.

Mr Justice Birss at London's High Court said that it would be the last time he would grant an adjournment of a bid by HM Revenue & Customs to have the Formula One team put into administration.

HMRC issued its application in August over £900,000 outstanding in respect of PAYE (income tax and national insurance) for June 2015.

Since then, while negotiations have been continuing to save the team, which is based in Enstone, Oxfordshire, a similar debt had accrued for July with another due shortly for August.

Lawyers for HMRC told the judge today that a further adjournment was not appropriate as, while Lotus's drivers, employees and mechanics were being paid, HMRC had not received payment.

Lotus, which is reported to be in talks with Renault, had argued that, if the administration order was made today, the company would cease to trade, which would not be in the interest of creditors and would cost 400 jobs.

Granting the adjournment, the judge said that: "The parties have satisfied me that that there is genuinely a real prospect that the first stage of the deal that is being described will be signed in the next seven days which will allow significant funding to go into the company."

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Read More

From Belfast Telegraph