Lola Cars International suffers from cashflow problems

Lola Cars International has announced that the latest economic downturn and the decision of HMRC not to pay ongoing R&D tax credits has caused a serious cashflow problem for the businesses.

The company said in a statement that is has issued Notices of intention to appoint an administrator to both Lola Cars International Limited and Lola Composites Limited, which will allow the board to continue its discussions with possible investors and prospective purchasers.

The company said this action would help secure the best outcome for the staff, creditors and customers of both businesses.