Vital F1 | Caterham saga: Fernandes hits out
Vital Login
Social Login

Other Sites

Network Navigation

Vital Partners

'If It's F1, It's Vital'

Caterham saga: Fernandes hits out

Tony Fernandes the director of AirAsia, the chairman of Queens Park Rangers FC and founder of Caterham has hit out at Engavest.

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.

However unsurprisingly Fernandes has hit back, giving his version of events which has now led to the very real scenario that Caterham could be absent from the United States Grand Prix in Austin.

“In June 2014, I decided, together with my co-shareholders, to sell my stake in the Caterham F1 team. We agreed in good faith to sell the shares to a Swiss company named 'Engavest' on the basis that Engavest undertook to pay all of the existing and future creditors, including the staff. The continued payment of staff and creditors was so important to me that I ensured that the shares would not be transferred to the new buyers unless they complied with this condition,' Fernandes said in a statement.

“Sadly, Engavest has failed to comply with any of the conditions in the agreement and Caterham Sports Ltd (the UK operating company of the F1 team) has had to be put into administration by the bank, with large sums owing to numerous creditors. Our agreement with Engavest was very clear: there was no legal obligation to transfer the shares to them unless certain conditions - which included paying creditors - were met. Those conditions have not been met. Our lawyers have asked Engavest several times to comply with these conditions but they have failed to engage.”

He added: “If you agree to buy a business, you must pay its bills. They have breached that promise and now, sadly, it is others such as the employees and the fans of the Caterham F1 team that will suffer if the team ceases to race. I sincerely hope that this will not be the case and that a solution can be found,”








Join Vital F1

It's easy to join up and join in on VitalF1.com, simply click the link and enjoy getting involved!

If you are already a member of Vital Football, your logins will automatically work on VitalF1.com!

The Journalist

Writer: Red5 Mail feedback, articles or suggestions

Date:Friday October 24 2014

Time: 10:00AM

 

Have Your Say

Log in...
with your social network     OR     with your Vital account

Recent Vital F1 Articles

Is Formula E a threat to Formula One? (Wednesday August 16 2017)

F1 to introduce standardised parts? (Monday August 14 2017)

Sainz fake news (Saturday August 12 2017)

Hungaroring set for revamp (Wednesday August 9 2017)

Drivers mixed on Halo introduction (Monday August 7 2017)

Sauber ditch Honda for Ferrari (Thursday August 3 2017)

Blog: Hungarian GP Report (Wednesday August 2 2017)

2017 Hungarian GP - Race (Sunday July 30 2017)

2017 Hungarian GP - Qualifying (Saturday July 29 2017)

2017 Hungarian GP - FP3 (Saturday July 29 2017)

2017 Hungarian GP - FP2 (Friday July 28 2017)

2017 Hungarian GP - FP1 (Friday July 28 2017)

Halo will debut in F1 in 2018 (Friday July 28 2017)

Blog: Hungaroring Preview (Thursday July 27 2017)

Cosworth to return to Formula One? (Wednesday July 26 2017)

Who will win in Hungary (Monday July 24 2017)

Sympathy for Kvyat? (Thursday July 20 2017)

Vettel plays down Silverstone swing (Wednesday July 19 2017)

Hamilton’s takeover (Tuesday July 18 2017)

Blog: British GP Report (Monday July 17 2017)

2017 British GP - Race (Sunday July 16 2017)

Blog: Silverstone Qualifying (Sunday July 16 2017)

2017 British GP - Qualifying (Sunday July 16 2017)

2017 British GP - FP3 (Sunday July 16 2017)

2017 British GP - FP2 (Friday July 14 2017)

2017 British GP - FP1 (Friday July 14 2017)

Who will win the British Grand Prix? (Thursday July 13 2017)

Blog: Silverstone Preview (Wednesday July 12 2017)

Blog: Austrian GP Report (Monday July 10 2017)

2017 Austria GP - Race (Sunday July 9 2017)

Blog: Red Bull Ring Qualifying (Saturday July 8 2017)

2017 Austria GP - Qualifying (Saturday July 8 2017)

2017 Austria GP - FP3 (Saturday July 8 2017)

2017 Austria GP - FP2 (Friday July 7 2017)

2017 Austrian GP - FP1 (Friday July 7 2017)

Blog: Red Bull Ring Preview (Thursday July 6 2017)

Hulkenberg sets sights on 2018 (Wednesday July 5 2017)

Who will win in Austria? (Monday July 3 2017)

The Force is not with India (Thursday June 29 2017)

Lauda and Wolff on Vettel (Wednesday June 28 2017)

Hamilton and Ricciardo slam Vettel (Tuesday June 27 2017)

Blog: Azerbaijan GP Report (Monday June 26 2017)

2017 Azerbaijan GP - Race (Sunday June 25 2017)

Blog: Baku Qualifying (Saturday June 24 2017)

2017 Azerbaijan GP - Qualifying (Saturday June 24 2017)

2017 Azerbaijan GP - FP3 (Saturday June 24 2017)

2017 Azerbaijan GP - FP2 (Friday June 23 2017)

2017 Azerbaijan GP - FP1 (Friday June 23 2017)

Blog: Baku Preview (Thursday June 22 2017)

F1 too boring for Malaysia (Wednesday June 21 2017)

Who will win in Baku? (Monday June 19 2017)

Kvyat rant at 'circus' stewarding (Thursday June 15 2017)

Merc hit Ferrari with heavy blow (Tuesday June 13 2017)

Blog: Canadian GP Report (Monday June 12 2017)

2017 Canada GP - Race (Sunday June 11 2017)

Blog: Montreal Qualifying (Sunday June 11 2017)

2017 Canada GP - Qualifying (Saturday June 10 2017)

2017 Canada GP - FP3 (Saturday June 10 2017)

2017 Canada GP - FP2 (Friday June 9 2017)

2017 Canada GP - FP1 (Friday June 9 2017)

Formula One season set to expand (Thursday June 8 2017)

Blog: Montreal Preview (Tuesday June 6 2017)

Who will win in Canada? (Monday June 5 2017)

Youngster set to return to F1 (Friday June 2 2017)

Mercedes war with Ferrari not over (Wednesday May 31 2017)

All talk on Ferrari (Tuesday May 30 2017)

Blog: Monaco GP Report (Monday May 29 2017)

2017 Monaco GP - Race (Sunday May 28 2017)

Blog: Monaco Qualifying (Saturday May 27 2017)

2017 Monaco GP - Qualifying (Saturday May 27 2017)

2017 Monaco GP - FP3 (Saturday May 27 2017)

2017 Monaco GP - FP2 (Thursday May 25 2017)

2017 Monaco GP - FP1 (Thursday May 25 2017)

Blog: Monaco Preview (Wednesday May 24 2017)

Who will win in Monaco? (Monday May 22 2017)

Archived Vital F1 Articles

List All Vital F1 Articles
Have your say
Click here to suggest an article
Click here to suggest a poll

Vital Members League (view all)

1. DJ 1160
2. Red5 1120
3. The Fear 773
4. Villaininthemerde 612
5. johnkelv 601
6. Druss_the_Legend 590
7. Push The Button 503
8. col8 334
9. The Intimidator 211
10. VanGisbergen2013 168

Current Site Poll (view all polls)

Was Hamilton right to move over for Bottas?
No 9%
Yes - It was a team order 33%
Yes - But naive team order 58%