LONDON (Reuters) – Formula 1 team Williams has secured a loan through a company owned by the father of its Canadian Formula 1 driver Nicholas Latifi as part of a corporate loan refinancing .
The loan, which was finalized last week according to Companies House documents, was with Latrus Racing Corp, owned by Michael Latifi.
The Canadian businessman acquired a roughly 10% stake in rivals McLaren in 2018 through his British Virgin Islands-based company Nidala Ltd in what has been touted as a purely business deal.
Latifi junior is due to make his Formula 1 debut with Williams this year, as the season has yet to start due to the coronavirus outbreak.
The private team, once the dominant world champion who suffered a significant loss of income after finishing 10th in the past two seasons, sold their advanced engineering division in December.
Latifi’s Sofina Foods is also a major sponsor of the UK-based team.
The Latrus loan involves a mortgage on the team’s facilities with the collection of heritage racing cars included as collateral. No financial details were given.
“After the WAE sale in late 2019, we started a refinancing process,” team deputy manager Claire Williams, daughter of founder Frank, told motorsport.com.
“We have now completed our refinancing with a syndicate of lenders, all of which have been negotiated on an arm’s length commercial basis. The loan package provides us with the resources we need to move forward.
Williams announced last week that they had put staff on leave until the end of May due to the COVID-19 pandemic, with drivers also facing pay cuts.
Reporting by Alan Baldwin, editing by Ed Osmond