Renault letter of intent to buy back team expected to stave off administration; case brought by HMRC over £2.7m of unpaid tax
Monday 28 September 2015 09:47, UK
Renault's letter of intent to buy back Lotus is expected to help stave off the threat of administration in the case brought against the team by HMRC, which will be heard in the High Court on Monday.
The case stems from a tax claim by HM Revenue and Customs. Lawyers for the team had persuaded Mr Justice Birss to adjourn the previous two hearings, but he said the latest would be the last.
Yet the anticipation is that the letter signed by Renault, which the French manufacturer says is the "first step towards the project of a Renault Formula 1 team from the 2016 racing season" will lead to the matter being dropped.
Lawyers for HMRC say that Lotus owe over £900,000 in back taxes and national insurance contributions for September, and similar figures for July and August.
They add that the team have shown no willingness to pay and were "taking advantage of the involuntary credit to HMRC".
Speaking to Sky Sports F1 after the Japanese GP, Lotus CEO Matthew Carter said he was "very confident it's going to be sorted out".
He added: "We're confident the court case tomorrow is going to be dealt with and hopefully we should have some news during the course of the next few weeks on the future of the team.
"Things have moved on in the last week certainly."
Lotus drivers Romain Grosjean and Pastor Maldonado finished seven and eighth at Suzuka - a much-needed result for the cash-strapped team.
They were locked out of their hospitality suite all weekend after failing to pay a bill from the year before, with team members relying on Bernie Ecclestone's Paddock Club for food.
During the last court hearing - held during the Singapore GP weekend - Lotus's lawyers said that matters had progressed "substantially" and that a payment from PDVSA, Maldonado's sponsor, is due on on November 1.
The money wasn't guaranteed at the time but the team subsequently announced that the Venezuelan - who brings backing reportedly worth £30m - will be staying on in 2016.
A sticking point for Renault has also been the additional 'historic constructor' payments they want from Ecclestone, F1's CEO.
Renault are said to want a 65 per cent stake in the team, worth $100m and to be paid over a period of 10 years. On top of that, it would also come up with an operating budget.
Don't miss the F1 Midweek Report on Wednesday night at 8.30pm when Ted Kravitz and David Brabham join Natalie Pinkham to discuss the Japanese GP
