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21/07/2015 TheIndependent
http://www.pressreader.com/uk/theindependent 1/1
21/07/2015 i(fromTheIndependent)
http://www.pressreader.com/uk/ifromtheindependent 1/1
22/07/2015 LotusFormulaOneTeamChasedForNearly$1MillionOfUnpaidBillsForbes
http://www.forbes.com/sites/csylt/2015/07/19/lotusformulaoneteamchasedfornearly1millionofunpaidbills/ 1/6
JUL 19, 2015 @ 9:00 PM 8,395 VIEWS
LotusFormulaOneTeamChasedForNearly$1MillionOfUnpaidBills
Business/2 FREE Issues of Forbes
TheLotusFormulaOneteamhasracedintoastormafteraBritishcourtorderedittoclearnearly$1millionofunpaidbillswriteChristianSyltandAaronRook.
ThenewsisrevealedinBritainsSundayExpressnewspaperanditfollowstherecentdiscoverythatLotusisatriskofclosureaftercreditorsfiledwhatisknownasawindinguppetitionagainstit.Anyoneowedmorethan$1,170(750)canapplytoacourttowindupacompanywhichiswhatLotusfacedinLondonsHighCourton6thJuly.Thejudge,MrRegistrarBriggs,adjournedthehearingfortwoweeksinordertoallowtheteamtimetofindaresolutiontothematter.Therearemorethanafewoverduepayments.
DocumentsfromBritainsCountyCourtRegistryshowthatLotushasbeenorderedtoclear27unpaidbillswhichcometo$876,049withthefirstdemandforpaymentdatingbackto19Mayandthemostrecent,for$2,451,from10July.Thelargestofthebillscomesto$207,240andthesmallestisjust$151.TherulingstoclearthebillsareknownasCountyCourtJudgements.Anyoneowedmoneycanbringtheircasebeforeacountycourtandifitrulestheyshouldbepaid,ajudgementismadeintheirfavor.However,thisdoesnotguaranteetheywillgettheirmoneyandthecourtrecordsshowthatLotushassatisfiedjustfourjudgementscomingtoatotalof$98,400.
ThereisnosuggestionthatLotuswillcloseitsdoors.Infact,itisfarfromthefirsttimethatfinancialtroubleattheteamhascometolight.
AsForbesreportedlastyear,in2013Lotusmadea$107.9millionnetlosswhichisbelievedtobethebiggestevermadebyanautoracingoutfit.Thelosswasfuelledbytheteamshugecostsandacceleratinginterestpaymentsonintercompanyloans.Itwasdisclosedintheteamsfinancialstatementsfortheyearending31December2013whichshowedthatnetlosseswidenedby$16millionasrevenueremainedstableat$154.1million.Costswerecutby$5millionbutinterestpaymentsontheintercompanyloansincreasedfrom$1millionto$22.6million.
LotusF1isbasedinBritainandisultimatelycontrolledbyprivateequityfirmGeniiCapitalwhichwasfoundedbyGerardLopez,anearlyinvestorinSkype.
In2009Geniiinitiallyinvestedintheteam,whichwasknownasRenaultF1andwontwodriversandconstructorsworldchampionshipsin2005and2006withFernandoAlonso.
TheFrenchteamsuccessfullybroughttoanendfiveyearsofFerrariandMichaelSchumacherdominanceinthesport.Alonsohowever,themaincatalystinRenaultssuccess,lefttheteamin2007forMcLarenbutafterastrenuousseasonwiththeWokingteamhereturnedtoRenaultin2008.
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Christian Sylt , CONTRIBUTORI write about the business of auto racing and theme parks
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Opinions expressed by Forbes Contributors are their own.
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22/07/2015 LotusFormulaOneTeamChasedForNearly$1MillionOfUnpaidBillsForbes
http://www.forbes.com/sites/csylt/2015/07/19/lotusformulaoneteamchasedfornearly1millionofunpaidbills/ 2/6
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Theteamhoweverwasonasteadydecline,finishingaslowaseighthin2009.ItstimeinF1thoughwillalwaysbedefinedbyonecontroversialincidentbilledascrashgate.
Thescandal,orchestratedfromtheRenaultpitwall,sawtheteamordertherecentlycrownedFormulaEworldchampionNelsonPiquetJrtocrashattheSingaporeGrandPrixin2008allowinghisteammateAlonsotogainanadvantageunderthesafetycar.
ArguablythescandalwasthebeginningoftheendforRenaultandin2010GeniitookcompletecontroloftheteamwhichallowedRenaulttoscalebackitsinvolvementtobeingonlyanenginesupplier.ItwasrebrandedasLotusRenaultGPfor2011followingatitlesponsorshipsignedwiththehistoricBritishmotormarqueLotusCars.In2012itbecameLotusF1Teamanditsprospectsrevvedup.
Thenewlybrandedteamenjoyedreasonablesuccess,securingtwowinsattheAbuDhabiGrandPrixin2012andtheAustralianGrandPrixin2013,bothofwhichwerethankstoformerchampionKimiRaikkonen.
However,financialdifficultiesbegantoburdentheteamandattheendof2013RikknenleftforFerrariafteradisputewhenheclaimedhehadnotbeenpaidasingleeuroallyear.LotusnowhasalowerprofiledriverpairingofRomainGrosjeanandPastorMaldonado,whoisbackedbyVenezuelanownedoilcompanyPDVSA.
ItisthelatestteamtoskidintotroubleafterCaterhamandMarussiacrashedintoadministration,theBritishequivalentofChapter11bankruptcy,inOctoberlastyear.TheycollapsedunderthecolossalcostsrequiredtorunF1teams.
Generally,thedirectorsofF1teamsrunthemtobreakeven(meaningthattheymakeneitheraprofitnorloss)whichinvolvesspendingwhateverisavailabletothem.Theydothisinpursuitofvictoryonthepremisethatitisbettertowinandmakenoprofitratherthanmakemoneyanddobadlyontrack.
Victoryontrackincreasesthevalueoftheteamwhichgivestheownersapayoutwhentheycometosellit.Italsoincreasestheteamsabilitytobringinmoremoneyfromsponsorshipsincebrandsarepreparedtopaymoretobeassociatedwithawinningteam.Whilstteamownerscangetafinancialreturnfromsellingateaminthelongrun,whatdotheygetoutwhenitisrunningtobreakeven?
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RacetogetmoneyoutofailingLotusFormulaOneaftercourtorderTHELotusFormulaOneteamhasbeenorderedbythecourtstoclearnearly600,000ofdebts,afterfailingtopay27bills,oneofwhichwasforjust97.
RomanGrosjean'sLotusbehindRedBullinCanadalastmonth
Thisyear,accordingtocourtdocuments,27"unsatisfiedjudgments"worth561,408inall,havebeenmadeagainstLotus.
Thelargestofthesewas132,816andthesmallestwasthedemandfor97.ThemostrecentwasonJuly10for1,571.
CountycourtrecordsalsoshowthatLotus,basedinPrimeMinisterDavidCameron'sconstituencyofWitney,Oxfordshire,hassatisfiedjustfourjudgmentscomingtoatotalof63,063.Earlierthismonth,itwashitwithaHighCourtwindinguppetitionfromacreditor.
MrRegistrarBriggsadjournedthehearingfortwoweekstoallowtheteamtimetofindaresolution.
LotusisthelatestF1teamtohittroubleafterCaterhamandMarussiacrashedintoadministrationinOctober.
Accountsshowthatin2013,LotusF1madea64.9millionnetlossonrevenuesof92.7million.
LotusF1,acquiredfromRenaultin2009,iscontrolledbyprivateequityfirmGeniiCapital,notthesportscarmakerinNorfolk.
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The Independent - 21 Jul 15 - Cheglakovi - 21 Jul 15 - CheglakovLotus Formula One Team Chased For Nearly $1 Million Of Unpaid Bills - ForbesLotus Formula One team ordered to clear 600k of debts after failing to pay its bills _ City & Business _ Finance _ Daily Express