F1 Racing - UK (2020-07)

INSIDER

20 GP RACING JULY 2020

>The history of Williams, part 4: tragedy and triumph

>F1’s 70AT 70: part 3: the seventies

>Now ThatWas A Car:Vanwall VW

>Austrian,Styrian and Hungarian GP reports

ON SALE

JUL

30

★Onsalethe

samedayas

theprintedition

Go to http://www.gpracing.com/digital-edition/

THIS

MONTH

AFIGHTFORDIVERSITY

A deeper look at Hamilton’s

crusadefor social justice

INSIDEF1’S NEWNORMAL

What’s it likeinside theF

bubble during thepandemic

GET THEWORLD’S

BESTF1 MAGAZINE

WHEREVERYOU ARE

NEXT

MONTH*

★Downloadand

readitonyour

PC,MacoriPad

★ It’sidentical

to theprint

edition

CONTACT US ON

Theclassiccar

collectionsofboth

Williams(above)an d

McLaren(below)are

beingleveraged bythe

teamstoraisefunds

03

KEYMERCEDES

F1ENGINEMAN

LEAVES

Dominant for most of Formula 1’s hybrid

powertrain era, Mercedes faces a new challenge after

a key architect of its engine programme signalled his

intention to leave. Mercedes Benz High Performance

[email protected] GP Racing, 1 EtonStreet, Richmond,London, TW9 1AG

in 2017,when theother shareholders bought formerCEO

Ron Dennis’s25% stake for a sum reported to be£275m.

Williamsdeclared a £1 3m loss in its latest fi nan cial

reports andannouncedthat a formalsale process for

the businesshad begun –an un precedented move fora

family owned team whichhas robustlyrebuffed previous

proposed acquisitions. Although20% of Williams Grand

Prix Holdings plc was list ed on the Frankfurt Stock

Exchange in 2011, and other minorityshareholdershave

come and gone, Sir Frank Williams retainsa controlling

52.3% share. Williamshas already sold its Advanced

Engineeringbusine ss and itterminated itsrelationship

with title sponsor Rokit in May, following that upwith a

statement saying the team had fulfill ed all its contractual

obligations– wh ich can be readas a

suggestion thatits erstwhile sponsor hadnot.

But who is in the frame to investnow?

ChanochNissany, the Israeli businessman

who once drove aMinardi during practice for

the Hungarian GP, is an outside possibility

as his sonRoy, anF2 racer, is a Williams

development driver.Dmitry Mazepin, the

Russianbillionairewhose son Nikita also races

in F2, is another name toutedas a possible

buyer. He tried to acquire Racing Point in 2018when

its prev ious owners hitfi nan cial trouble.

Most likely, though, isMichael Latifi, whose son

Nicholas willrace for Williams this season. Latifi owns a

10% share of McLaren, and in April he reportedly loaned

Williams someof the £28m the team obtainedas part of a

refi nancing deal, some of whichis le veraged onthe group’s

heritage assets –including its historic car collection.

McLaren is alsoconsidering a partialsale and is heading

to the courts as it tries to raise£280m to shoreup its

fi nances. It deems the court action necessary because

its plans involvethepossible sale and lease back of its

properties, and the sale of some or all of itsheritage ca r

collection. These plans have beencomplicated bywhat

McLaren described in astatementas “an ad hoc group

of creditors (including hedge funds and distressed asset

investors)” which haschallenged itsright to proceed.

This group has an interest in the previous bondissue and

is objecting tothe release of the security.McLaren claims

the group is stalling theprocess inorder to force the

company to accept analternativefi nancing proposal.

It has nowsuccessfully applied for itslegal action to be

fast-tracked throughthe UK courts, starting on 2July.

McLaren says that while it “hassuffi cien t liquidity

to meetits obligations as andwhen theyfall due in the

very short term, further liquidityis required to be made

available by no later than 17 July2020”. Judg e Anthony

Mann,who agreed toexpedite the hearing, describedthe

timescale as “ambitious”.

INSIDER

20 GP RACING JULY 2020

>The history of Williams, part 4: tragedy and triumph

>F1’s 70AT 70: part 3: the seventies

>Now ThatWas A Car:Vanwall VW

>Austrian,Styrian and Hungarian GP reports

ON SALE

JUL

30

★Onsalethe

samedayas

theprintedition

Go to http://www.gpracing.com/digital-edition/

THIS

MONTH

AFIGHTFORDIVERSITY

A deeper look at Hamilton’s

crusadefor social justice

INSIDEF1’S NEWNORMAL

What’s it likeinside theF

bubble during thepandemic

GET THEWORLD’S

BESTF1 MAGAZINE

WHEREVERYOU ARE

NEXT

MONTH*

★Downloadand
readitonyour
PC,MacoriPad

★ It’sidentical

to theprint

edition

CONTACT US ON

Theclassiccar

collectionsofboth

Williams(above)an d

McLaren(below)are

beingleveraged bythe

teamstoraisefunds

03

KEYMERCEDES

F1ENGINEMAN

LEAVES

Dominant for most of Formula 1’s hybrid

powertrain era, Mercedes faces a new challenge after

a key architect of its engine programme signalled his

intention to leave. Mercedes Benz High Performance

[email protected] GP Racing, 1 EtonStreet, Richmond,London, TW9 1AG

in 2017,when theother shareholders bought formerCEO

Ron Dennis’s25% stake for a sum reported to be£275m.

Williamsdeclared a £1 3m loss in its latest fi nan cial

reports andannouncedthat a formalsale process for

the businesshad begun –an un precedented move fora

family owned team whichhas robustlyrebuffed previous

proposed acquisitions. Although20% of Williams Grand

Prix Holdings plc was list ed on the Frankfurt Stock

Exchange in 2011, and other minorityshareholdershave

come and gone, Sir Frank Williams retainsa controlling

52.3% share. Williamshas already sold its Advanced

Engineeringbusine ss and itterminated itsrelationship

with title sponsor Rokit in May, following that upwith a

statement saying the team had fulfill ed all its contractual

obligations– wh ich can be readas a

suggestion thatits erstwhile sponsor hadnot.

But who is in the frame to investnow?

ChanochNissany, the Israeli businessman

who once drove aMinardi during practice for

the Hungarian GP, is an outside possibility

as his sonRoy, anF2 racer, is a Williams

development driver.Dmitry Mazepin, the

Russianbillionairewhose son Nikita also races

in F2, is another name toutedas a possible

buyer. He tried to acquire Racing Point in 2018when

its prev ious owners hitfi nan cial trouble.

Most likely, though, isMichael Latifi, whose son

Nicholas willrace for Williams this season. Latifi owns a

10% share of McLaren, and in April he reportedly loaned

Williams someof the £28m the team obtainedas part of a

refi nancing deal, some of whichis le veraged onthe group’s

heritage assets –including its historic car collection.

McLaren is alsoconsidering a partialsale and is heading

to the courts as it tries to raise£280m to shoreup its

fi nances. It deems the court action necessary because

its plans involvethepossible sale and lease back of its

properties, and the sale of some or all of itsheritage ca r

collection. These plans have beencomplicated bywhat

McLaren described in astatementas “an ad hoc group

of creditors (including hedge funds and distressed asset

investors)” which haschallenged itsright to proceed.

This group has an interest in the previous bondissue and

is objecting tothe release of the security.McLaren claims

the group is stalling theprocess inorder to force the

company to accept analternativefi nancing proposal.

It has nowsuccessfully applied for itslegal action to be

fast-tracked throughthe UK courts, starting on 2July.

McLaren says that while it “hassuffi cien t liquidity

to meetits obligations as andwhen theyfall due in the

very short term, further liquidityis required to be made

available by no later than 17 July2020”. Judg e Anthony

Mann,who agreed toexpedite the hearing, describedthe

timescale as “ambitious”.