Chase Carey talks to lenders to modify a clause
This change gives them time not to take care of their debts until 2022
Liberty Media has managed to improve the conditions of a loan that has 2.5 billion euros. This change, according to Chase Carey, will put the company in a better position to overcome the covid-19 crisis.
F1 is gaining air in the economic arena to better deal with the crisis. Chase Carey has successfully alleviated his coffers concerns thanks to a move regarding his loans and credits.
The contract signed by F1 to obtain a loan of 2.5 billion euros and a loan of 445 million euros contains a clause in which the lenders specify terms that the category must respect.
The stoppage by the covid-19 will irreparably affect the benefits of F1 and this makes it probable that F1 cannot respect the clause, so with that objective they have negotiated an improvement, as announced Monday. Both parties agree that “with certain additional conditions, the clause relating to net benefits will not apply until January 1, 2022“as reported by the American web portal Motorsport.com.
In this way, F1 will not have to meet the debt generated by this loan immediately, but it will save time to recover the benefits that have not been achieved in recent months. This means that, for the time being, F1 is not currently forced to comply with the original conditions that had been agreed, which gives them air this year and the next to recover from the hiatus.
Liberty Media CEO Chase Carey highlights how much this move encourages them. “Formula 1 remains the premier class as it celebrates its 70th anniversary. This new flexibility in our debt clauses, together with a solid annual balance sheet and abundant liquidity will allow us to endure these difficult times.s “, highlighted Carey.
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