Lotus Quashes Liquidation Rumors


  • Lotus Evora Picture

    Lotus Evora Picture

    Lotus denied rumors that it could be liquidated. | March 19, 2013

Just the Facts:
  • Lotus on Tuesday denied rumors that it could be liquidated.
  • "Contrary to rumors initiated by Autocar magazine, Lotus is not being liquidated," the company said in a statement provided to Edmunds.
  • Incorrect media reports said that Lotus' creditors could be seeking to have the company's assets liquidated to pay its debts.

HETHEL, EnglandLotus on Tuesday denied rumors that it could be liquidated.

"Contrary to rumors initiated by Autocar magazine, Lotus is not being liquidated," the company said in a statement provided to Edmunds.

Incorrect media reports said that Lotus' creditors could be seeking to have the company's assets liquidated to pay its debts. The speculation triggered nervous headlines, including one from Top Gear that asked: "Just what is happening at Lotus?"

"Rumour continues to swirl around Lotus, a situation that is exacerbated by current owner DRB-Hicom's obstinate refusal to go public with its plans for this beleaguered but much-loved British institution," said Top Gear on its Web site on Monday.

Kevin Smith, the U.S. spokesman for Lotus, responded to a query by Edmunds by sending the official company statement on the matter, entitled "Group Lotus PLC is not being liquidated." Group Lotus includes Lotus sports cars.

The confusion seems to have stemmed from the fact that Group Lotus PLC was one of the names listed on Monday's Companies Court Winding Up List in the United Kingdom, prompting widespread media speculation.

"Earlier this year, Lotus was in a contractual dispute which was resolved amicably a number of weeks ago," according to the Lotus statement. "However the High Court process meant that the matter was still shown on the High Court website, as there was a hearing scheduled for today. This is what appears to have been seen and misunderstood. The case was only listed for the proceedings to be disposed of.

"The claim has now been dismissed with no order as to costs."

Edmunds says: Lotus puts out a fire — at least for the time being.

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