F1: UK High Court gives Lotus/Renault 10 weeks

Lotus faced the threat of administration as it owed £2.7 million ($4.1m) in back income tax and national insurance – £900,000 ($1.4m) for each of June, July and August.

With Lotus entering into negotiations and a period of due diligence with Renault in late May/early June with regard to the French manufacturer taking a 65 percent stake in the squad, trading was effectively suspended. Lotus has since faced several winding-up orders from various companies, but has managed to find a way through the financial mire.

Taking on the tax issues, however, has proven more complex, with the case twice previously adjourned, as Renault provided the presiding judge with letters declaring its interest in taking over Lotus. Negotiations have been protracted due to various complications, but Renault has now provided a signed letter of intent regarding the potential controlling acquisition in Lotus.

That was enough to satisfy the judge, who has given Renault and Lotus 10 weeks to finalize the deal that will see Renault return to F1 as a works outfit in 2016.

Originally on Autosport.com