The Lotus F1 Team has avoided being placed into administration after the High Court decided to adjourn its tax case for another 70 days, allowing time for Renault to complete its much mooted takeover.

Following two adjournments already, Lotus had been threatened with administration today if it couldn't come up with the funds to pay existing income tax debts - understood to be as much as ?2.7million - to HMRC.

However, after Renault confirmed it had issued a 'letter of intent' to purchase the Enstone-based team on the morning of the hearing, Reuters is reporting that the case has now been adjourned for more than two months.

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The move will give Lotus some much needed breathing space and also seemingly sets into motion Renault#s plans to take the team over without further complications, even though the terms of the deal - and the sticking point of 'legacy' royalties from Bernie Ecclestone - are still seemingly being thrashed out.

Indeed, though the letter of intent from Renault doesn't ultimately guarantee it will go ahead and purchase Lotus, it is nonetheless the first formal notification that it is planning a return to F1 as a fully-fledged manufacturer for the first time since 2009.

The French firm has a long history in Formula 1 as both a manufacturer entry and an engine builder, with its latest foray as a fully-fledged works effort coming as its successful, but recently fractious relationship with Red Bull Racing as an engine supplier reaches an early divorce.

In all, Renault has won ten constructors' world titles as an engine supplier and a further two as factory effort.