Lola Files For Bankruptcy

Former Formula One manufacturer Lola Cars is close to entering bankruptcy protection for the second time in 15 years. The company, which built cars for other F1 teams and briefly had its own outfit in 1997, says changes to tax rules made by the British government mean that it has "a serious cash flow problem." Lola says "this step allows the board to continue its discussions with possible investors and prospective purchasers." The 54-year-old company was last in trouble in 1997 after its disastrous attempt to return to Formula One with its own car. Lola was sold to Martin Birrane and has since enjoyed success in the Le Mans 24-hour race.