The survival of the Lotus F1 team "remains in considerable doubt" but it has "been given another week’s breathing space in the form of a second and final adjournment in their court case with HMRC concerning unpaid income tax and national insurance," according to Paul Weaver of the London GUARDIAN. The original high court case earlier this month "was adjourned for two weeks, against the background of a possible takeover" of the team by Renault. Lotus has been waiting for Renault to confirm its offer for a 65% ownership of the Oxfordshire-based company, worth an estimated $100M, "which would be paid over 10 years." Complicating that deal "is Renault’s continuing negotiations" with F1 CEO Bernie Ecclestone "over payments they feel are owed them because of their historical status as a constructor." But Renault and Lotus "managed to convince the court that a deal is pending." Summing up, Justice Birrs said, "The parties have satisfied me there is genuinely a real prospect the first stage of the deal being described will be signed in the next seven days, which will allow significant funding to go into the company" (GUARDIAN, 9/20). REUTERS' Alan Baldwin wrote lawyers for HMRC "opposed the request for adjournment on the grounds that debts were mounting and the team had shown no willingness to pay them despite meeting other obligations." Luxembourg-based owner Genii "is covering the costs of keeping the team, which is racing in Singapore this weekend, on track, but has faced a series of legal challenges from creditors." The court heard that £905,000 ($1.42M) of income tax and national insurance contributions fall due to HMRC on Sept. 22, "with similar amounts unpaid in July and August." Barrister Jeremy Bamford said, "The people they need to pay have been paid. They are taking advantage of the involuntary credit to HMRC." With confidential documents passed to the judge to show how close a deal was, lawyers for Lotus said matters had progressed "substantially" since the last adjournment 11 days previously (REUTERS, 9/18). SKY SPORTS' Mike Wise wrote Lotus Deputy Team Principal Federico Gastaldi said that "they hoped a deal with Renault to buy back the team could be completed" before Sept. 28. He said, "We are very pleased at the decision that has been taken. We've got until the 28th of September -- so, yes, we were expecting it to happen." Lawyers for HMRC said that Lotus owed over £900,000 in back taxes and national insurance contributions for September, "and similar figures for July and August." It has been suggested that Renault's takeover of the team "is being held up by their insistence that the sport should give them 'heritage payments.'" Gastaldi said, "To be honest, that's a conversation between Renault and Bernie Ecclestone. We are not part of this situation. Whatever the management or board of Renault are dealing with Mr. Ecclestone, it is their own decision" (SKY SPORTS, 9/19).
