Oxford

Lotus given two-week adjournment in HMRC insolvency proceedings

Lotus's Romain Grosjean Image copyright Getty Images
Image caption HMRC had applied to put the team, based in Enstone, Oxfordshire, in administration over unpaid tax

Lotus has been given a further two-week breathing space in insolvency proceedings brought by Revenue and Customs (HMRC).

The High Court granted the adjournment after hearing a share purchase agreement was due to be completed, which meant HMRC would receive £1.4m.

HMRC had applied to put the Formula 1 team, based in Enstone, Oxfordshire, in administration over unpaid tax.

On Thursday, Renault confirmed it would take over Lotus.

The adjournment was granted by Mr Justice Birss until 21 December, with the completion of the purchase agreement due on 16 December.

He approved Lotus' application for the adjournment, which was backed by Renault Sport and not resisted, because the proposed deal was the result most likely to be of benefit to the creditors and the best chance of rescuing the business as a going concern.

Other creditors, owed in excess of £2m, would be paid by 31 December, counsel Jeremy Bamford told the court.

Renault first announced its intention to take over the cash-strapped team in September.

HMRC brought the case against Lotus because of unpaid income tax and National Insurance contributions.

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