Bank loan could send Renault into spin – report

Tue, 26 October 2010, 06:01

Oct.26 (GMM) Enstone based Renault could reportedly lose control of its formula one team after taking out a bank loan.

The Evening Standard reports that the team, now majority owned by the Luxembourg-based investment firm Genii Capital, has borrowed money from Lithuania’s AB Snoras.

The report said the reason for the loan is a cash shortage after losing sponsors including Mutua Madrilena, Pepe Jeans and Dutch bank ING in the wake of the crashgate scandal.

“It’s not known when the loan has to be repaid by but it is clear that if the team fails to repay, Snoras could call in its security and take control of it,” said the newspaper.

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