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Caterham on brink of turmoil

Caterham's Formula One team could be set to be thrown into turmoil following a threat from the current management of the team.

On Tuesday the Caterham F1 teams manufacturer Caterham Sports Limited was placed into Administration.

Administrator Finbarr O'Connell have stated that 200 jobs are affected and up to £20million was owed to external suppliers.

As it is separate entity to the F1 team which is operated by 1 Malaysia Racing Team [1MRT], there was apparently no immediate risk to the Formula One team, despite both businesses being based at Leafield.

But due to their close ties there are obviously going to be large ramifications.

Ever since Tony Fernandes sold the Formula One team to a Swiss-Middle Eastern consortium in July rumours of financial problems have struck the team.

The new owners of Caterham have now gone public on who they are, after previously remaining anonymous. But the only reason behind 'Engavest SA' going public was to make accusation towards former owner Tony Fernandes.

Engavest SA are now exploring 'all options' and threatening legal action against Fernandes amid their claim that a share transfer wasn't completed.

They have also threatened that they will pull the plug on their involvement in the team.

'On 29 June 2014, Caterham Enterprises Ltd, Caterham (UK) Ltd and Sheikh Mohamed Nasarudin (Seller) and their shareholders Tony Fernandes and Datuk Kamarudin Bin Meranun entered into a Sale and Purchase Agreement (SPA) with Engavest SA (Buyer) with regards to 1Malaysia Racing Team Sdn Bhd/Caterham F1 Team,' the Caterham F1 statement read on Sky Sports website.

'Since the date of the Agreement, the Seller has refused to comply with its legal obligations to transfer their shares to the Buyer. The Buyer has been left in the invidious position of funding the team without having legal title to the team it had bought. This is in total contradiction to the Sellerís press release of 3 October 2014 which stated that Mr Fernandes and his Caterham Group had no longer any connection with the Caterham F1 Team.

'The administrators of Caterham Sports Limited have been appointed on behalf of Export-Import Bank of Malaysia Berhad (Exim), a creditor of Mr Fernandes and the Caterham Group. The Buyer has no connection with Exim. Caterham Sports Ltd was a supplier company to the Caterham F1 Team. Very regrettably, the administrators' appointment has had devastating effects on the F1 Team's activities. Since their appointment, the administrators have released various press statements which have been severely detrimental to the management of the Caterham F1 team.

'After three months of operating the Caterham F1 Team in good faith, the Buyer is now forced to explore all its options including the withdrawal of its management team. Lawyers have been instructed by the Buyer to bring all necessary claims against all parties, including Mr Fernandes who, as an owner, will run the F1 operation.'








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The Journalist

Writer: Red5 Mail feedback, articles or suggestions

Date:Thursday October 23 2014

Time: 10:00AM

 

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