Lotus F1 woes continue after recent corporate recovery

Published on August 7, 2015 by Crawfords Accounting

The Lotus F1 team may have survived a recent winding-up petition, but their corporate recovery appears to be far from over.

Just weeks ago, they were forced to battle a petition to have the team wound up, which was lodged in London by one of their parts suppliers.

Now the team has hit headlines again, this time after missing the start of Friday practice at the recent Hungary Grand Prix.

The reason why they weren’t out on the track until 30 minutes after the green light? They had no tyres, as suppliers Pirelli had embargoed their weekend delivery due to late payment.

F1 teams pay their tyre bill quarterly; however, prize money for the sport is not received until the end of the season, according to reports.

As a result, cash flow can get very tight, with income from sponsorship crucial to surviving the season.

Lotus were able to negotiate with Pirelli and actually received their tyres an hour before the session began, but needed 90 minutes to warm them up.

Their corporate recovery seems far from secure though, with reports suggesting they may ultimately be bought out by fellow F1 team Renault.

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