F1: Lotus prepares for court appearance

The Lotus Formula 1 team will make what it hopes will be its final UK High Court appearance on Monday after finally concluding a takeover deal with Renault.

After months of negotiations for Renault, not only with Lotus's now former owners in Genii Capital but also F1 chief executuve Bernie Ecclestone, the backlog of creditors can be cleared.

Due to the team being in negotiations with Renault for a period of six months, it meant the paying of bills was put on hold until terms could be agreed. The biggest creditor was Her Majesty's Revenue & Customs (HMRC), which come late summer was owed £2.7 million [$4m] in back PAYE (income tax and national insurance) – $1.36m for each of June, July and August.

With Lotus and Renault in talks, the presiding judge twice adjourned the case before then agreeing to a 10-week hiatus at the end of September. That was after Renault showed a letter of intent to complete a potential takeover, and in order to give both parties the time required to finalize the deal.

With the 10-week grace period up on Monday, lawyers from Lotus and Renault will make final representations, and to show proof talks have concluded and any outstanding debts can be cleared.

Detailing the process ahead of the return visit to the High Court, Lotus CEO Matthew Carter told Autosport: "You physically have to go back in front of the judge. In theory, the likelihood everyone will be paid by Monday is very thin, so it's a case of going back in front of the judge, showing him the progress that has been made and that there is a physical piece of paper to say the deal is done.

"He then needs to make a decision, but bearing in mind, the best decision for the creditors – which is what he has to weigh up – is not to close the business down at a time when it has just secured a sale to a major car manufacturer. Hopefully it should be all fairly routine."

Originally on Autosport.com