Lotus losses: Debt reaches R2.6bn

LONDON, England - Financial woes at Lotus F1 continue to worsen as a report revealed its debt reached the equivalent of a staggering R2.6-billion.

Alarming news about the financial health of Lotus team owner Gerard Lopez has emerged. Together with Eric Lux, Lopez heads the investment company Genii Capital, which owns the Formula 1 team.

According to Luxembourg newspaper Tageblatt, the financial situation of the team is dire.

BILLIONS IN DEBT

Accounts filed with the commercial register for 2012 showed an annual loss equivalent to about R761-million, with company equity listed as a negative R1.8-billion.

The report said that in 2013 the loss was R790-million, while total debt in August 2014 was reportedly shown at R2.6-billion.

Tageblatt claims that although company filings are due no later than seven months after the end of the financial year, Genii only filed the accounts for 2011 and 2012 in July 2014.

The accounts for 2013 have not yet been filed.

The team was fourth in the previous two Constructors' championships and is in the same place at the moment in the 2014 campaign.